Monetary policy Tag

09 Apr China pledges US$69 billion in credit backing for tech after resurrecting dormant financial tools

Posted at 03:00h in Asia

The refinancing will cover 60 per cent of the principal for qualifying loans to tech-based small and medium-sized enterprises, and can be extended twice for an additional year each time, the central bank said in an online statement.“[The loans] will guide financial institutions to provide...

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02 Apr Ray Dalio says now is the time to buy ‘cheap’ Chinese stocks as Beijing works to revive the economy

Posted at 06:30h in Asia

Ray Dalio, the billionaire founder of world’s largest hedge fund, Bridgewater Associates, said now is the time to invest in beaten-down Chinese stocks as Beijing works to shore up the economy.“The time to buy is when everyone hates the market and it’s cheap, which is...

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30 Mar Opinion | Interest rate cuts or no, a new financial crisis may be inevitable

Posted at 08:30h in Asia

It’s instructive to read Mervyn King, former governor of the Bank of England, in his book The End of Alchemy: Money, Banking and the Future of the Global Economy, to grasp why a repeat is so likely. He recalls that in the run-up to the...

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29 Mar China’s central bank keeps ‘cautious’ in bond trade despite Xi Jinping’s mandate

Posted at 14:00h in Asia

Despite instructions from President Xi Jinping to resume the trading of central government bonds, China’s central bank is expected to take a cautious approach to mitigate unexpected consequences for inflation and the exchange rate, analysts said.At the twice-a-decade financial work conference, held last October, Xi...

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28 Mar Opinion | Hold the bazooka: weak China growth, low stimulus is new normal

Posted at 08:30h in Asia

This partly explains why the government has stepped up support for the crisis-ridden housing market. Beijing has intensified pressure on banks to assist vulnerable developers, cut mortgage rates to stimulate demand and provided low-cost financing to the urban village renovation and affordable housing programmes.It also...

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21 Mar Why Japan is forced to take baby steps to normalise monetary policy

Posted at 08:30h in Asia

Japan’s central bank ending its negative interest rate regime comes not a moment too soon, but that alone will not return the economy to its heyday. Uncertainty over the outlook for growth and inflation persists, and the internal issues that led to the adoption of...

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10 Mar China’s ‘two sessions’ 2024: new mandate, party control push central bank beyond ordinary role

Posted at 22:00h in Asia

Rather than take drastic action to silo China from the US and insulate its economy from what already looked like a ticking time bomb, Wang promised his old friend the country would not dump its massive holdings of US treasury bills.Though that news was a...

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29 Feb Opinion | Interest rates could stay higher for longer. Australia, New Zealand show why

Posted at 21:30h in Asia

At the end of last year, investors were convinced that interest rates in the world’s leading economies would come down sharply this year. Following the US Federal Reserve’s unexpected signal last December that its monetary tightening campaign was over and that it expected borrowing costs...

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24 Feb Opinion | Fugitive thief of global debt is now a potential killer

Posted at 07:45h in Asia

The Institute of International Finance (IIF) reported in its latest Global Debt Monitor on February 21 that over US$15 trillion was added to the global debt mountain last year, and the total is now a record US$313 trillion. But it is not so much facts...

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24 Jan Asian Financial Forum: Bankers call for greater international cooperation on climate change, fintech amid soft landing

Posted at 11:30h in Asia

Central and multilateral development bankers at the Asian Financial Forum (AFF) have urged greater international cooperation amid growing expectations of a soft economic landing, but struck a cautionary note about risks posed to the global economy by sticky inflation, geopolitical tensions and China’s property downturn.“There...

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