Central Banks
PBOC Sticks to Limited Stimulus Even as China’s Outlook Darkens
- Latest moves include rate cuts and guidance for bank lending
- PBOC remains shy of major stimulus in line with new priorities
This article is for subscribers only.
China’s property market crisis is testing whether central bank Governor Yi Gang can stick to his stimulus-lite strategy.
Over the past couple of weeks, Yi has cut key lending rates, announced special loans to struggling property developers via policy banks and urged state-owned lenders to extend more credit. Meantime, speculation of a cut to reserve requirement ratios grows.