中國經濟

China RRR: Wrong focus

Many of the top analysts who cover the Chinese economy predicted that the central bank would loosen policy by cutting banks’ required reserves in January. It did not.

Should investors be disappointed at the lack of easing? Pleased that the government seems so confident abut the health of the economy? Or are they simply barking up the wrong tree?

Andy Rothman, a veteran economist with CLSA in Shanghai, called this week for an end to the obsession about China’s required reserve ratio - normally referred to by its clunky acronym, RRR:

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