Page 8 - Monetary Easing News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Another round of quantitative easing will not enhance the economy, but will depress it in the future.

The macroeconomic picture looks "pretty stable," and as investors gauge the risk of a recession, "It's seeming like it's likely to be mild," he said.

Another interest rate cut could further weaken the renminbi while global inflation risks are rising and higher import costs threaten domestic price stability. By contrast, rolling out more fiscal stimulus is a viable option as there is precedent of a higher budget deficit, and investor demand for Chinese debt remains firm.

Leading state-controlled banks are likely to report earnings growth of between 8 and 15 per cent for 2021, according to analysts’ estimates.

While stocks responded strongly to assurances by Beijing, the pledges are still vague and need to be backed up by concrete measures. There are still no clear signs that regulators are lifting restrictions on developers’ access to cash from pre-sold homes, a key source of liquidity.