Thinking About China
Opinion

China’s Central Bank Rate Cuts: Too Little to Be Much Help

The People’s Bank has cut interest rates to help spur China’s economy. It is way too little and way too late to have much effect.
China’s Central Bank Rate Cuts: Too Little to Be Much Help
The headquarters of the Chinese central bank in Beijing in a file photo. Mark Ralston/AFP via Getty Images
Milton Ezrati
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Commentary

The People’s Bank of China (PBOC) finally cut interest rates on July 22, with the goal of helping China’s economy recover its lost momentum. While this action was first promised months ago in a series of Communist Party planning meetings, the PBOC has held off acting until now.

Milton Ezrati
Milton Ezrati
Author
Milton Ezrati is a contributing editor at The National Interest, an affiliate of the Center for the Study of Human Capital at the University at Buffalo (SUNY), and chief economist for Vested, a New York-based communications firm. Before joining Vested, he served as chief market strategist and economist for Lord, Abbett & Co. He also writes frequently for City Journal and blogs regularly for Forbes. His latest book is "Thirty Tomorrows: The Next Three Decades of Globalization, Demographics, and How We Will Live."