PBOC’s Policy Flip-Flop Sows Confusion Over Timing of Rate Cuts

At a rare press briefing back in September, China’s central bank chief Pan Gongsheng unveiled a stimulus blitz that spurred optimism for one of the biggest policy shifts in a decade. But since then, market watchers wanting more support have been left scratching their heads.

The People’s Bank of China hasn’t cut interest rates in nearly half a year despite its most pro-easing stance in 14 years. Officials have repeatedly hinted at lowering the amount of cash banks must hold in reserve but haven’t followed through. And an experiment in government bond-buying has been halted, sharply tightening interbank liquidity.