Will Chinese Currency Policies Change Directions After An Interest Rate Cut?

The Chinese central bank just announced that it will cut interest rates, but the market is more concerned about whether this means China is officially in the sweeping global game of quantitative easing. The Chinese central bank is now in a monetary policy dilemma: It is neither willing to embark on the track of excessive quantitative easing, nor ready to tighten currency policies. Instead, it is returning to neutrality, which doesn’t mean an orientation change in its monetary policies.



Yi Xianrong, Researcher, Chinese Academy of Social Sciences via CHINA US Focus http://ift.tt/1F0bKq5