Adam Wolfe / Bloomberg News: on how Xi’s Central Bank Shakeup Prioritizes Continuity Over Change
Beth McCann
2nd JUL. 2023
Bloomberg’s Yujing Liu reports that Pan Gongsheng’s appointment as party chief of the PBOC “indicates the bank will stay the course, consistent with its recent approach of only modestly cutting interest rates and encouraging banks to lend more to targeted areas.”
ASR’s Adam Wolfe is quoted, observing that…
“Pan was always the natural successor to Yi within the PBoC, but his promotion seemed in doubt after he wasn't included in the Party's Central Committee. From a policy perspective, Pan's appointment seems to signal continuity, with further incremental steps toward interest rate and exchange rate liberalization likely. But Pan's relatively weak Party ranking could lead to less PBoC influence in economic decision making at the highest levels. Of course, the system is essentially a black box at that level, so it's not clear how much it will matter that he isn't on the Central Committee.”
To read the full column on Bloomberg, click HERE (Bloomberg subscription may be required)
ASR clients can read Adam’s notes on:
How China is reshaping global value chains – 8 June 2023
China’s debt brake – 30 May 2023
China’s good-enough recovery – 17 May 2023
China’s missing current account surplus – 16 May 2023
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