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Why the People’s Bank of China is easing monetary policy carefully, with a chisel not a sledgehammer

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China’s economic growth remains on the back foot, with both structural and cyclical factors undermining the economy’s rate of expansion.Unlike during previous slowdowns, such as the global financial crisis of 2008 and 2009, the People’s Bank of China is adopting a painstaking approach to easing monetary policy: it is like an artist honing a marble statue with a chisel, instead of smashing up slabs with a sledgehammer.In the year ahead, there are good reasons for the PBOC to persist with such a…

Source: South China Morning Post