China Easing May Not be as Effective

China is pulling out all the usual easing props to counter its slowing economy, but the old hats don’t appear to be working as well as they used to.

“The sluggishness of China’s economy reinforces our view that further easing measures will be needed,” economists at Read MoreANZ said in a note Thursday. “However, the monetary easing so far appears to have limited impact on the real economy, indicating that the policy transmission process has been ineffective.”

Earlier this month, a slew of data, including industrial output and retail sales, missed analysts’ expectations. In the first quarter, China’s economic growth slowed to 7.0 percent, its slowest in six years. China’s economy expanded 7.4 percent in 2014, its slowest pace in 24 years and undershooting the government’s target for the first time since 1998.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.