Tiny interest rate cuts of the kind delivered by the People’s Bank of China fall far short of what the country needs.
A woman walks past the central bank in Beijing on July 9, 2024. Adek Berry/AFP via Getty Images
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Commentary
Every time Beijing announces policies to help the country’s faltering economy, it includes mention of lower interest rates and other forms of monetary ease. Of course, the economy needs more than simply monetary help, but even on this front, the People’s Bank of China (PBOC) falls short of a substantive contribution to the stimulus effort. The bank is simply failing in its obligation to the regime.
