CHINA: RTRS writes “China’s central bank will ramp..
CHINA: RTRS writes “China’s central bank will ramp up its policy easing to
support the coronavirus-ravaged economy but debt worries and property risks will
prevent it from following the U.S. Federal Reserve’s steep rate cuts or
quantitative easing moves, policy sources said…The People’s Bank of China
(PBOC) will boost credit and lower funding costs, especially for small firms
seen as vital for growth and jobs, and accommodate increased fiscal spending,
according to three sources involved in internal policy discussions. The sources
declined to be named due to the sensitivity of the matter… “The PBOC will step
up monetary policy easing, but it’s impossible for it to follow the Federal
Reserve,” said one of the sources. “The PBOC will take a step by step approach
and reserve some ammunition.” “We should continue to cut RRR and interest rates.
But we should be worried about the side-effects if monetary policy easing
becomes too strong, as we are still digesting the hangover from previous
stimulus measures,” said a second source.”