finance-worldwide

CHINA’S MONETARY POLICY PLANS: EFFECT ON CONSUMERS AND INVESTORS

By: Director Raymond Mobrez Ph.D

Monetary policy is important because it has an immense impact on financing conditions in the economy. It influences prices, the availability of credit, bank’s willingness to assume risk, inflationary expectations and ultimately consumption and investment.
The People’s Bank of China, China’s central bank, has committed to the “moderately loose” monetary policy Definition of monetary policy:

The use of the money supply and/or the interest rate to influence the level of macroeconomic activity and other policy objectives including the balance of payments or the exchange rate. that has helped the economy recover from the global economic slump. Over the next two quarters, the central bank Definition of central bank:
(more…)