China Adds a Touch of Showbiz to Its Stimulus
In economics, it’s not policy alone that counts — what you say, and how you say it, matters. Beijing is discovering that.
Break out the popcorn.
Photographer: Raul Ariano/BloombergFederal Reserve Chair Jerome Powell is almost a household name. Christine Lagarde, head of the European Central Bank, possesses an undeniable star power. The man who runs China’s central bank struggles to achieve even a small measure of that fame, despite the heft of the country — and the extent of the challenges confronting him. That’s changing.
The People’s Bank of China unveiled a slew of measures on Tuesday, including cuts in a key interest rate and the amount of money banks must set aside for reserves. Efforts to juice growth have, until now, been incremental. Further easing was overdue and economists had been anticipating progress in the coming months. But the manner of delivery, during a rare press conference by Governor Pan Gongsheng, added a dynamic flavor and sent stocks soaring. It followed a more modest step by Beijing announced during a briefing in January.