prc30 on Nostr: Totally expected, but the PBoC formally moved to lower the benchmark lending rate ...
Totally expected, but the PBoC formally moved to lower the benchmark lending rate this morning.
Just a reminder that up to this point, all #China has done in terms of simulative measures have been via the monetary route.
There has been zero formal shift fiscally. I remain doubtful that there will be any material fiscal support provided by Beijing and the Ministry of Finance.
If you do see headlines making claims of fiscal measures, look deeper into the details. The expectation would be for Beijing to announce the issuance of large scale government bonds. The proceeds, however, of that issuance will more than likely be directed at addressing local government debt. In short, central government bonds will be used to retire local government bonds. A net zero impart to the economy.
https://www.cnbc.com/2024/10/21/china-lowers-benchmark-lending-rates-by-25-basis-points.html
Just a reminder that up to this point, all #China has done in terms of simulative measures have been via the monetary route.
There has been zero formal shift fiscally. I remain doubtful that there will be any material fiscal support provided by Beijing and the Ministry of Finance.
If you do see headlines making claims of fiscal measures, look deeper into the details. The expectation would be for Beijing to announce the issuance of large scale government bonds. The proceeds, however, of that issuance will more than likely be directed at addressing local government debt. In short, central government bonds will be used to retire local government bonds. A net zero impart to the economy.
https://www.cnbc.com/2024/10/21/china-lowers-benchmark-lending-rates-by-25-basis-points.html