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The People’s Bank of China, unlike the U.S. Federal Reserve, finds itself entering 2022 under pressure to stimulate growth rather than tackle inflation.

The People’s Bank of China, unlike the U.S. Federal Reserve, finds itself entering 2022 under pressure to stimulate growth rather than tackle inflation.

Photographer: Andrea Verdelli/Bloomberg
Markets
The Big Take

As the Fed Hikes, China’s Central Bank Seizes the Moment for Stimulus

The People’s Bank of China’s newfound autonomy may prove to be an unlikely source of support for the recovery.

The firebreak between mounting economic threats and a continuation in the global recovery: an imposing concrete and glass structure in the heart of Beijing’s financial district, elephant statues guarding the door, the Chinese flag flying above.

That’s the headquarters of the People’s Bank of China which, in contrast with the U.S. Federal Reserve, has shifted to stimulus mode to shield the world’s biggest growth engine from the Evergrande property slump, virus lockdowns and higher global borrowing costs as the Fed tightens.