央行降息。

 

股市不领情。

 

银行不领情。

 

消费者不领情。

 

雇主也不领情！

 

我在LinkedIn 博文中说，这个七天回购利率对中国巨大的信贷市场和经济没有意义。降低雨伞的价格可能更有相关性。

 

刺激经济的关键是：

 

（1）银行的贷款欲望（及坏账承受力），

 

（2）借款人的风险溢价，

 

（3）实业投资者的欲望。

 

短期利率与信贷市场和实体经济没多大关系。

 

China cuts interest rates: Trivia, trivia!

 

Bloomberg makes a big fuss about nothing. After China’s central bank cut an obscure interest rate by 20 basis points at lunch time, Bloomberg immediately says that (The) “People’s Bank of China reduces 7-day reverse repo rate to 2.20 per cent from 2.40 per cent, the largest cut since 2015.”.

 

After a national lockdown for 7-8 weeks, isn’t this a tiny bandage for a fatal car crash? Worse: This repo rate is irrelevant to the credit market or the economy. Reducing the umbrella price would be more relevant.

 

No wonder Shanghai stock index fell 0.9% today.

 

The point I made this morning in another post is:

 

(1) China is constantly stimulating its economy. 4 decades in a row.

 

(2) It does not need to make a show of it. The public knows the government is always working on it.

 

(3) Government does not need parliament to approve an action: stimulus or otherwise. They just do it.

 

(4) Labour market pressure is very minor because of an automatic stabiliser: millions of migrant workers.