The annual policy address by Premier Li Keqiang on Tuesday should have greater-than-usual relevance for European Central Bank officials, as they try to gauge how much help for the region’s economy they’re going to get from Chinese demand.
China will not resort to ‘flood-like’ stimulus in monetary policy next year, although it will consider more cuts as needed to reserves held at commercial banks, local media quoted a central bank adviser as saying in a report on Tuesday.
The European Central Bank will extend its unprecedented bond-buying program into 2018, S&P Ratings has said, despite current plans to pencil in an end to its stimulus measure around December this year.
The European Central Bank (ECB) will provide stimulus until a sustained inflation rebound, even as its unprecedented measures come with side effects and face constraints, two policymakers said, just as the bank is contemplating more easing.
The Bank of Japan held fire on expanding its unprecedented monetary easing scheme but said the economy was being dragged by a slowdown in key emerging markets, while it was forecast to unveil further measures ‘before too long’.
China’s central bank joined its European counterpart in boosting liquidity to address weakening growth, underscoring a divergence in direction among the world’s biggest economies as the US reduces stimulus.