OpinionThinking About China

China’s Central Bank Seems Unable to Deliver What the Chinese Economy Needs

Tiny interest rate cuts of the kind delivered by the People’s Bank of China fall far short of what the country needs.
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China’s Central Bank Seems Unable to Deliver What the Chinese Economy Needs
A woman walks past the central bank in Beijing on July 9, 2024. Adek Berry/AFP via Getty Images
Milton Ezrati
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Commentary

Every time Beijing announces policies to help the country’s faltering economy, it includes mention of lower interest rates and other forms of monetary ease. Of course, the economy needs more than simply monetary help, but even on this front, the People’s Bank of China (PBOC) falls short of a substantive contribution to the stimulus effort. The bank is simply failing in its obligation to the regime.

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."