A view of a smokestack of the Wujing Coal-Electricity Power Station in Shanghai on September 28. Beijing is seeking to alleviate its energy crunch by ramping up domestic coal production and stepping up imports. Photo: AFP A view of a smokestack of the Wujing Coal-Electricity Power Station in Shanghai on September 28. Beijing is seeking to alleviate its energy crunch by ramping up domestic coal production and stepping up imports. Photo: AFP
A view of a smokestack of the Wujing Coal-Electricity Power Station in Shanghai on September 28. Beijing is seeking to alleviate its energy crunch by ramping up domestic coal production and stepping up imports. Photo: AFP
Neal Kimberley
Opinion

Opinion

Macroscope by Neal Kimberley

Despite soaring energy prices, China shouldn’t tighten monetary policy

  • Central banks in emerging markets may feel obliged to react to rising energy prices, even though tighter monetary policy won’t necessarily be effective against them
  • As the People’s Bank of China is no doubt aware, higher interest rates might leave both consumers and companies even more financially vulnerable

A view of a smokestack of the Wujing Coal-Electricity Power Station in Shanghai on September 28. Beijing is seeking to alleviate its energy crunch by ramping up domestic coal production and stepping up imports. Photo: AFP A view of a smokestack of the Wujing Coal-Electricity Power Station in Shanghai on September 28. Beijing is seeking to alleviate its energy crunch by ramping up domestic coal production and stepping up imports. Photo: AFP
A view of a smokestack of the Wujing Coal-Electricity Power Station in Shanghai on September 28. Beijing is seeking to alleviate its energy crunch by ramping up domestic coal production and stepping up imports. Photo: AFP
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