The People's Bank of China has taken a measured approach to monetary support this year. “If previous rounds of withdrawing stimulus policies are a guide, ‘tight money’ and ‘tight credit’ are inevitable, and policy rate hikes are also normal,” the China Securities Journal said, Bloomberg reports. Chinese officials have been talking about gradually winding back its stimulus since the summer, alongside evidence of a rebounding economy. The PBOC has taken a measured approach to monetary support this year, lowering interest rates, injecting liquidity and giving businesses loan repayment holidays, but has refrained from the massive stimulus seen elsewhere. Former Finance Minister Lou Jiwei said almost two weeks ago that it was time to study an orderly exit of loose monetary policies.

Source: The Standard November 26, 2020 05:03 UTC