China Holds Firm to $5 Trillion Anchor as Fed, ECB Seek Exit
- PBOC’s assets contracted 3.1% from January-end to March-end
- Asset holdings reduction won’t continue, economists say
PBOC's Balance Sheet Stabilizes
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Investors who fret about when and how global central banks will run down their crisis-era balance sheets can be relaxed about the biggest of them all -- China’s.
Whereas the Federal Reserve’s $4.5 trillion asset pile is set to be shrunk and the European Central Bank’s should stop growing by the end of this year as the outlook brightens, China’s $5 trillion hoard is here to stay for the time being -- and could even still expand, according to the majority of respondents in a Bloomberg survey of People’s Bank of China watchers.