China's Central Bank Faces Policy Bind Over Debt, Growth Goals
Slumping yuan, trade war complicate debt cleanup for PBOC
New governor Yi has kept policy tweaks targeted so far
Professor Eswar Prasad, former head of the IMF’s China unit, talks about China’s currency policy.(Source: Bloomberg)Bloomberg News
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China’s central bank is caught in a bind, as it seeks to tighten monetary policy for some parts of the economy while loosening it for others.
Already engaged in the mammoth task of wringing bad debts out of China’s $40 trillion-plus financial system, the People’s Bank of China is now attempting to achieve that while simultaneously being asked to bolster flagging growth and rescue falling stock markets.
