Top China planner and PBOC square off over policy action

Little reason: A woman walks past the headquarters of the PBOC in Beijing. The PBOC sees little reason to ease when companies are hoarding cash rather than spending it. – Reuters

BEIJING: Strong comments from China’s top state planner that the economy needed more support was most likely aimed at persuading the central bank to take bolder policy action.

For now though, the People’s Bank of China (PBOC) is unlikely to be swayed, worried cheaper credit has a greater chance of fuelling asset bubbles and unwanted capital outflows than fresh investment.