China’s monetary policy will rely on banks’ compliance
Keyword(s):
Significance China’s GDP growth slowed to 6.4% year-on-year in the fourth quarter of 2018, with full-year growth at 6.6%. The PBoC is loosening monetary policy to support growth by lowering banks’ RRR alongside policies to incentivise banks to lend more to the private sector. Impacts If the policy fails and leverage increases relative to GDP, then risk in the financial system will rise. If RRR cuts cause consumption to increase, China’s trade surpluses are likely to decrease, helping ease trade tensions with Washington. Liberalising interest rates will, when it eventually happens, allow banks to price loans to private firms more accurately.
2017 ◽
Vol 44
(2)
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pp. 282-293
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2021 ◽
Vol ahead-of-print
(ahead-of-print)
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2014 ◽
Vol 104
(10)
◽
pp. 3154-3185
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2018 ◽
Vol 45
(6)
◽
pp. 1159-1174
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Keyword(s):
2021 ◽
Vol ahead-of-print
(ahead-of-print)
◽
Keyword(s):
2018 ◽
Vol 11
(4)
◽
pp. 575-590
◽
Keyword(s):
2020 ◽
Vol ahead-of-print
(ahead-of-print)
◽
Keyword(s):