, Columnist
China Smiles and Waits as World Cuts Rates
Central bankers are using up their ammunition because they’re hostage to traders and politicians. Beijing has its eye on the long term.
Taking the long view.
Photographer: WANG ZHAO/AFP/Getty Images
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China’s state-driven economic model has created many problems. Monetary policy isn’t one of them.
With the U.S. Federal Reserve cutting rates this week and the European Central Bank poised to follow suit in September, the temptation is high for other central banks to fall in line. More likely than not, the People’s Bank of China will sit tight, watching developed nations play out what is a zero-sum game.