PBOC: To strictly control the leverage of households, as it could weigh on economic growth


A household credit boom could tend to drag down economic growth more so than corporate debt, the latest research paper released by the People’s Bank of China (PBOC) explained.

Key takeaways from the paper

“Researchers say household leverage slowed real per-capita GDP growth by 3.7% in five years.”

“Due to indebted households reducing consumption.”

“And that highly-indebted households are vulnerable to negative income changes.”

“Recommend that policy makers strictly control the leverage of households.”

Related reads

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Get Weekly Crypto trade ideas!  
Empower yourself with the best market insights

Join FXStreet Premium!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Bulls need to cross 1.2060 to keep the reins

EUR/USD stays on the front foot, recently inactive, near seven-week top. 100-day SMA tests the upside break of the key resistance line, now support. Bullish MACD, sustained trading above 200-day SMA favor buyers.

EUR/USD News

GBP/USD: Refreshes monthly top, inches closer to 1.4000 ahead of UK employment data

GBP/USD bulls refrain from catching a breather after rising the most since January 12. The cable rises for the seventh consecutive day, needless to mention the previous day’s heaviest run-up in over three months. Traders seem to wait for the UK’s employment figures for March for fresh impulse.

GBP/USD News

EUR/USD: Bulls need to cross 1.2060 to keep the reins

EUR/USD stays on the front foot, recently inactive, near seven-week top. 100-day SMA tests the upside break of the key resistance line, now support. Bullish MACD, sustained trading above 200-day SMA favor buyers.

EUR/USD News

Ripple finds foothold for 60% upswing

XRP price has sliced through the immediate demand barrier flipping it into a supply zone. Ripple’s recent jab at breaching this area has failed, creating a double bottom formation on the 6-hour chart.

Read more

The 3 currencies to watch this week

All of the major currencies traded higher on Monday as investors continued to drive the U.S. dollar lower. When a rise in Treasury yields, sell-off in U.S. stocks, strong payrolls and retail sales reports can’t lift the dollar, some wonder if it is time to worry.

Read more

Forex MAJORS

Cryptocurrencies

Signatures