China’s Debt Levels Will Limit Impact of Monetary Policy, Ex-PBOC Official Says

What’s new: The effects of China’s monetary policy will be largely limited as local governments, businesses and households all have holes in their finances that will discourage them from borrowing in the near future, according to former central bank official Guo Kai.

“The balance sheets of Chinese (local) governments, businesses and households have all been impaired over the past two to three years,” Guo, a member of the China Finance 40 Forum, said at a seminar Thursday held by the International Monetary Fund’s office in China and the Institute of World Economics and Politics at the Chinese Academy of Social Sciences.