The Wall Street Journal carried the report Wednesday US time, snippet:
- Of all the financial institutions being scrutinized by Mr. Xi’s discipline inspectors, the PBOC is arguably the most consequential.
- Officials briefed on the matter said the inspectors asked questions, reviewed documents and brought an unusually stern message: Beijing has little tolerance for any talk of central-bank independence; the monetary authority, just like any other part of the government, answers to the party.
- Earlier this week, pressured by senior leaders worried about plunging economic growth, the PBOC said it would ease banks’ reserve requirements, effectively making more cash available for bank lending. The move went against policy signals it had sent weeks earlier and came as the central bank and other financial institutions came under scrutiny by Beijing, part of Mr. Xi’s effort to curb capitalist forces in the economy.
The RRR cut may well be the first of many easing decisions from the PBOC ahead if Xi deems necessary. It would seem PBOC independence has been well and truly 'cracked down' upon.
Meanwhile, stocks in China are ripping higher, CSI300 is +2% as I update.