Anyone following along with the commentary out of (nearly) every central bank will be familiar with the refrain calling for more fiscal action to take some of the pressure of monetary policy

We hear it time and again

From the ECB, the Fed, RBA ... the list goes on. And, it appears the same in China.

A unit of the National Development and Reform Commission (NDRC) released a statement, part of which called for:

  • "Lower benchmark interest rates and banks' reserve requirement ratio at appropriate times."

The People's Bank of China, though, in effect told them to 'butt out' (its the PBOC that controls monetary policy, not the NDRC).

And, within hours, that part had vanished from the NDRC statement. Gone.

The Wall Street Journal carries more on the story, its interesting but as I say, not surprising. The article does not appear to be gated.

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The calls for more monetary policy stimulus from the PBOC (lower rates, a cut in the RRR, for example) are loud and consistent, and they are a plank in the bullish argument for risk assets (for example, as the AUD is perceived to be). I reckon there is more coming, but judging by the PBOC response, not soon.