Chinese official paper warns of financial risks posed by US policies, domestic market
Photo: Courtesy of Tsinghua PBCSF
With lingering uncertainty over the global economic recovery from COVID-19 and spillover effects from US monetary and fiscal policies, China needs to be aware of financial risks amid concerns over surging US inflation, according to an annual financial policy report released on Sunday that also said there wouldn’t be a “sharp U-turn” in China’s monetary policy this year.
A major contradiction facing global monetary policymaking is that there’s adequate liquidity while inflationary expectations are conspicuously rising, Lu Lei, deputy head of the State Administration of Foreign Exchange (SAFE), said on Sunday when releasing the report at the Tsinghua PBCSF Global Finance Forum in Beijing.
The US Fed reiterated at its April meeting that it’s not yet time to talk about tapering the policy of quantitative easing, continuing to send a dovish signal….