Pedestrians walk along Nanjing Road East in Shanghai on December 28. Monetary policy easing is not the right solution for boosting domestic demand. If China sticks to its zero-Covid strategy, consumption will struggle to return to its pre-pandemic levels. Photo: Bloomberg
Pedestrians walk along Nanjing Road East in Shanghai on December 28. Monetary policy easing is not the right solution for boosting domestic demand. If China sticks to its zero-Covid strategy, consumption will struggle to return to its pre-pandemic levels. Photo: Bloomberg
Hao Zhou
Opinion

Opinion

The View by Hao Zhou

Despite rate cuts, aggressive Chinese monetary policy easing is not on the cards

  • With a property slump and pandemic-induced weak consumption dragging down the economy, the PBOC has limited room for manoeuvre
  • Policymakers will not want to undermine the policy goal of curbing property speculation, and their hands are tied in the face of the zero-Covid policy

Pedestrians walk along Nanjing Road East in Shanghai on December 28. Monetary policy easing is not the right solution for boosting domestic demand. If China sticks to its zero-Covid strategy, consumption will struggle to return to its pre-pandemic levels. Photo: Bloomberg
Pedestrians walk along Nanjing Road East in Shanghai on December 28. Monetary policy easing is not the right solution for boosting domestic demand. If China sticks to its zero-Covid strategy, consumption will struggle to return to its pre-pandemic levels. Photo: Bloomberg
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