The Weekly Brief
30-09-2024
Thought of the week
Last week, Chinese policymakers announced the most aggressive package of stimulus measures since the Covid-19 pandemic in a bid to shore up the sluggish economy and stock market. While many of these policies have been implemented in isolation before, last week’s announcement was significant given the coordinated approach with which a range of monetary and fiscal measures were announced. In recent years, lowering rates and increasing liquidity has not boosted credit growth meaningfully as consumer confidence has remained subdued amid falling property prices. The broad package of monetary measures, alongside the promise of further fiscal stimulus to boost demand, is the clearest indication yet that policymakers stand ready to support the economy.
Chinese policymakers are taking action
China credit growth and Reserve Requirement Ratio, % of GDP (LHS), % (RHS)
More Insights