Skip to content
Subscriber Only
Anjani Trivedi

Why Cutting Interest Rates Won't Help China

Such an easing measure, while tempting, won’t transmit through the broader economy and financial system.

No white flags here.

No white flags here.

Photographer: Giulia Marchi/Bloomberg

The Chinese economy is sputtering, deflation looms and businesses are downbeat. Trade tensions with the U.S. portend an even scarier growth outlook. The Federal Reserve, too, has given China more room to ease. 

So where are the outright rate cuts?