Economics
China Flirts With Easier Monetary Policy Amid Slowing Growth
- Officials are juggling debt-reduction goals with weaker growth
- Yuan falls on further indication of easing bias: Commerzbank
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China’s banks are being offered cash and given instructions to boost lending, adding to evidence of a shift toward greater official support for the economy.
The banking and insurance regulator has asked financial institutions to “earnestly implement” plans to help reduce financing costs for small firms, saying big lenders should “take the lead,” according to a statement posted on its website. Meanwhile, the People’s Bank of China plans to use its Medium-term Lending Facility to encourage bank loans and investment in lower-rated corporate debt, according to China Business News.