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Adam Wolfe / Bloomberg News: on how Xi’s Central Bank Shakeup Prioritizes Continuity Over Change

Beth McCann

2nd JUL. 2023

Bloomberg’s Yujing Liu reports that Pan Gongsheng’s appointment as party chief of the PBOC “indicates the bank will stay the course, consistent with its recent approach of only modestly cutting interest rates and encouraging banks to lend more to targeted areas.” 

ASR’s Adam Wolfe is quoted, observing that… 

“Pan was always the natural successor to Yi within the PBoC, but his promotion seemed in doubt after he wasn't included in the Party's Central Committee. From a policy perspective, Pan's appointment seems to signal continuity, with further incremental steps toward interest rate and exchange rate liberalization likely. But Pan's relatively weak Party ranking could lead to less PBoC influence in economic decision making at the highest levels. Of course, the system is essentially a black box at that level, so it's not clear how much it will matter that he isn't on the Central Committee.” 

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