PBoC, government stimulus in China are merely a "painkiller, not a cure" for the economy

<p>I posted earlier in the week with links to news about China's RRR cut:</p><ul><li><a href="https://www.forexlive.com/centralbank/icymi-pboc-to-cut-reserve-requirement-ratio-by-50bp-from-5-february-20240124/" target="_blank" rel="follow" data-article-link="true">ICYMI – PBOC to cut reserve requirement ratio by 50bp from 5 February</a></li></ul><p>Remarks from analysts at ANZ following the cut:</p><ul><li>"The authorities will likely launch more measures to stabilize market sentiment, such as mobilizing state resources to support the stock market"</li><li>"The authorities are clearly concerned about market sentiment"
</li><li>also mentioned that the PBoC is taking measures to avoid a weakening in the Chinese yuan</li><li>said the latest moves might not be enough to fully reassure investors and that more needs to be done to foster wider reforms</li><li>
"This requires some structural measures to boost private sector confidence and the long-term outlook of the real estate sector," </li><li>"The measures announced so far do not seem sufficient"</li><li>“It’s like a painkiller, not a cure for the economy”</li><li>authorities “are very serious about easing monetary policy” </li></ul><p>Offshore yuan weekly candles:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.