Posted 12/29/2023, 3:02:00 AM
China's Central Bank Vows Monetary Measures to Address Deflation Concerns After Steep Drop in Consumer Prices
- China's central bank pledged to step up monetary policy to stimulate consumer prices and address deflation fears
- Consumer prices fell at the steepest pace in 3 years in November, underscoring economic challenges
- The bank vowed to expand domestic demand, boost confidence, and promote a virtuous economic cycle
- Analysts say broad easing like rate cuts is less likely; structural tools to target areas like housing more probable
- Liquidity injection to support infrastructure bonds will continue amid ample liquidity pledge
