PBOC Adrift Without Policy Anchor Amid Credit Slump
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China’s central bank chief is learning you can’t control what you can’t cut.
The People’s Bank of China’s removal of state controls on borrowing costs last year has left Governor Zhou Xiaochuan struggling to influence rates with tools such as adjusting some banks’ reserve requirements and targeted liquidity injections. Those steps haven’t stopped new credit and money-supply growth from slowing.