News Analysis
On the same day China released economic data for January and February, the People’s Bank of China (PBOC) announced a 0.25 percentage point cut to the reserve requirement ratio (RRR) for almost all banks. This move is expected to release approximately 500 billion yuan (about $75 billion) in long-term funds.
However, a financial expert believes that such a massive cash injection can only make economic data look good, but it is detrimental to economic development.
China’s Ministry of Finance released data on March 17 showing that domestic demand in China continued to decline in the first two months of 2023, with falling household incomes and a sluggish real estate market. Moreover, the scale of government debt continued to expand, as tax revenues in several major categories experienced significant declines compared to the same period last year….