Posted 2/23/2024, 5:57:00 AM
China's Central Bank Employs Surprise Tactics to Spur Sluggish Economy
- China's central bank is using surprise rate cuts and other moves to try to boost the struggling economy
- The surprise tactics aim to get more impact from the bank's limited policy options
- Policy room remains constrained by risks of weakening the currency and spurring more debt
- The strategy has yet to lift markets substantially or durably, signaling more action may be needed
- Relying on surprises risks reducing transparency and disappointing markets if actions fall short
