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Central Bank Buying Govt Bonds Not Equal To QE - Expert

CHINA PRESS
MNI (BEIJING)

Central banks purchasing government bonds does not itself equal western-style QE, which carries the premise of zero interest rate policy when no other tools are available, according to Wang Jiaqiang, a senior researcher at the China Banking Research Institute. Answering questions from journalists regarding market discussions on the PBOC potentially buying government bonds, Wang added this was a normal operation used to adjust liquidity in the secondary market to affect yields. (Source: Yicai)

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Central banks purchasing government bonds does not itself equal western-style QE, which carries the premise of zero interest rate policy when no other tools are available, according to Wang Jiaqiang, a senior researcher at the China Banking Research Institute. Answering questions from journalists regarding market discussions on the PBOC potentially buying government bonds, Wang added this was a normal operation used to adjust liquidity in the secondary market to affect yields. (Source: Yicai)