the Reduction will occur with a half of a percentage point in two stages, on 15 and 25 January.
all in all, it means that the 1,500 billion yuan released by the banks plan to lend to stimulate the economy. In particular, is believed to involve a loan to the private industry and small businesses.
came just hours after the country’s prime minister Li Keqiang declared for the central bank that it was time to re-lower the level for how much money banks must have in the cashier.
Last year, it took place four times.
It clearly shows that the central bank is a part of the chinese political leadership, not at all independent, and that the ruling Communist party intends to make use of the old tried and true methods to lift the economy out of the difficulties it got into in the meantime that China is waging a trade war with the united states.
in the monetary policy in China is expected shortly to blow full speed ahead in another favoritgren: investment in infrastructure.
Both domestic and international experts have warned against China for large stimulus package, which is not driven by business sense. They argue that what may possibly be won in the short-term risk to fight back against the country in the long term if the money invested does not give returns.
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