Upcoming Chinese data, from inflation and trade to credit and money supply numbers, should confirm Beijing dialled back on most of its pandemic-period easy-money policies by December.
The People’s Bank of China says monetary policy in 2021 will be targeted and flexible. Debt forgiveness and cheap money will be available for small firms. The recent string of corporate defaults also shows the economy is deleveraging.
Rate cuts are over, analysts say, but policy won’t be tightened abruptly. Subtle tightening is already underway via the yuan, up 7% against the dollar in 2020, but even there the central bank has signalled it doesn’t want any excesses.
– China’s central bank says it will make policy flexible, targeted in 2021