Thursday, April 30, 2015

China Daily: PBOC Poised to Pull QE Trigger as Economy Stalls

Reports that China is looking at starting its own version of QE due to a stalling economy are showing up. This China Daily article explains it in some detail. Jim Rickards posted this tweet regarding why China is doing this. Below are quotes from the China Daily article.


Central bank may buy local government bonds as a way to get more money into the marketsreports Zheng Yangpeng.
Financial markets on the Chinese mainland are abuzz with speculation that the central bank will inject more liquidity into the economy by unconventional means that could amount to version of "quantitative easing".
The People's Bank of China may adopt new policies that could include direct purchases of  local government bonds from the marketa report by Market News International said on  MondayThe Wall Street Journal also reported that the government may let banks use the  notes as collateral for loans from the central bank.

No comments:

Post a Comment