Quantitative easing a last choice for China

20 Aug 2012

China’s central bank is reportedly mulling a plan to buy government bonds to boost market liquidity, yet while the bank still has alternative options, quantitative easing will a last resort for the PBoC, say market analysts.

The People’s Bank of China (PBoC) is considering buying government bonds to inject much-needed liquidity into the country’s capital market. However, while the plan would give banks – the most prominent buyer of bonds - access to necessary cash to fund its lending operations, making further reserve requirement ...

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