A policy trade off
Subscribe to keep reading.
Sign up to stay briefed on what the Chinese government is doing, thinking, and saying.
Already a subscriber? Log in.
China’s central bank (PBoC) is reluctant to cut interest rates for fear of eroding bank profitability.
That was the message from the PBoC in its Q2 Monetary Policy report, published Thursday.
“In recent years, the net interest margin (NIM) [of commercial banks] has narrowed and profit growth has de...