Moody's questions the efficacy of China's stimulus

Omkar Godbole FXStreet Contributor

The ratings agency Moody's is out on the wires questioning the efficacy of China's future stimulus programs in buttressing the economic growth.

Key quotes

It's not the question of China being able to provide for the stimulus, but really the effectiveness of it.
The government will try to use as much selective stimulus to keep the economy on a good trade. They could cut the reserve requirement ratio again and implement tax cuts.
The challnge lies in ramping up consumer spending, given the high levels of household debts. Corporate debt load is also high.
Local governments are strapped with debt.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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