The Politburo of the Chinese Communist Party held its monthly meeting on Friday. According to the statement, policymakers want to stabilize the economy and boost growth with more fiscal measures in 2024.
State-run media Xinhua News Agency reported Politburo, which includes the ruling Communist Party’s top 24 officials and chaired by President Xi Jinping, plans to ramp up fiscal policy “appropriately” amid the souring backdrop of a real estate crisis, increasing local government debt risks, slowing global growth, and rising tensions with the West.
According to Bloomberg, the Politburo said monetary policy should be flexible, appropriate, targeted, and effective, with the previous wording “forceful” dropped from the statement.
Economists who reviewed the statement said the change indicates Beijing might be less focused on a monetary cannon and instead utilize targeted tools.
Xing Zhaopeng, a senior strategist at Australia & New Zealand Banking Group, said the statement indicates the size of interest rate cuts and bank reserve requirements might be smaller in 2024 compared to 2023.
Goldman Sachs said, “The overall tone appears less dovish compared with the July Politburo…
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