prc30 on Nostr: China Evening Missive A key benchmark interest rate, the medium-term loan rate, was ...
China Evening Missive
A key benchmark interest rate, the medium-term loan rate, was held steady earlier today in #China. While in line with expectations, there were some who thought a cut was possible given building pressure both domestically and now from the incoming Trump administration.
What looks to be the game plan is for China policy makers to hold firm on both monetary and fiscal policy until a time when it is clearer what actions Trump and his team intend to take on China.
For now, the focus of China policy is on doing all that is possible to preemptively guard against whatever might come. This includes keeping all power dry. Wait until it is truly needed.
All of this said, policy is allowing for the slow and steady weakening of the currency (CNY).
A key benchmark interest rate, the medium-term loan rate, was held steady earlier today in #China. While in line with expectations, there were some who thought a cut was possible given building pressure both domestically and now from the incoming Trump administration.
What looks to be the game plan is for China policy makers to hold firm on both monetary and fiscal policy until a time when it is clearer what actions Trump and his team intend to take on China.
For now, the focus of China policy is on doing all that is possible to preemptively guard against whatever might come. This includes keeping all power dry. Wait until it is truly needed.
All of this said, policy is allowing for the slow and steady weakening of the currency (CNY).