There have been signs from the People’s Bank of China they are seeking to scale back on their stimulus policies.
Indeed, some officials from the PBOC have been bluntly saying as much, this from the weekend (I posted on it Monday) – vice governor of the People’s Bank of China Liu Guoqiang:
- exit from loose monetary policy is a ‘matter of time’
- Policy makers globally are discussing the timing of stimulus withdrawal, and the consensus is that it should be done sooner rather than later
- “Exit is a matter of time and it is also necessary,” he said. “But the timing and method of exit need to be carefully evaluated, mainly based on the status of economic recovery.”
- overnight repo rate climbed to 2.53%, highest since mid-January
- 7-day rate rose for a sixth session