In response to deflationary threats, the People’s Bank of China is poised to execute a 10 basis points reduction in its one-year policy loans, specifically the medium-term lending facility. Simultaneously, a substantial injection of $16.9 billion USD is anticipated, marking a pivotal moment in the central bank's strategy to ensure liquidity and stimulate economic recovery (as Keynesian idiots still think).
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21 sats \ 1 reply \ @_b_o_n_e_s_ 13 Jan
you could imagine China going into a decade or so of ZIRP to combat asset price deflation
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42 sats \ 0 replies \ @TomK OP 13 Jan
They are already trying. Bubble masters
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21 sats \ 1 reply \ @Diego 12 Jan
Thanks for sharing. 16.9b doesn’t seem like a lot. Do you know how this compares to other liquidity injections?
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42 sats \ 0 replies \ @TomK OP 12 Jan
It's nearly impossible to draw the whole picture because of the manipulated data. This here is just the tip of the iceberg
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