💹 Big news from China! The government just rolled out a series of stimulus measures on Tuesday, aiming to give the economy a fresh boost and stabilize the property market. Among the highlights are cuts to the amount of cash banks need to hold and several policy tweaks to keep things moving smoothly.
Experts are buzzing about these changes, seeing them as a significant move that shows China's determination to keep the economic engine running. According to a research report by the Chinese think tank CF40, the People's Bank of China (PBOC) is making it clear: they're all in on stabilizing economic growth, the stock market, and the real estate sector.
The CF40 report points out that we can expect overall interest rates to drop, which is great news for supporting economic stability. Lowering mortgage rates for existing loans? That's a direct help to households, improving cash flow and keeping credit stable.
Lynn Song, chief economist for greater China at ING, told CNBC that these moves are a \"step in the right direction.\" What's cool is that the measures were announced together, packing more punch than if they were rolled out one by one. She believes there's still room for even more monetary easing in the coming months, especially since many global central banks are now looking to cut rates.
Eswar Prasad, an economics professor at Cornell University, shared with the Financial Times that although these actions might seem modest in size, they're symbolically significant. They signal the government's willingness to use macroeconomic tools to support the economy when it's slowing down.
Most experts agree: the PBOC's actions have exceeded expectations and are set to boost market confidence, at least in the short term. 🚀
(Cover photo via CFP)
Reference(s):
cgtn.com
