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China may be moving toward easy monetary policy, but it will have to tread delicately

China’s central bank is poised to move carefully toward easing monetary policy, even as the U.S. is on its way to tightening policy.

In moving in the opposite direction, the People’s Bank of China will need to strike a delicate balance, as policymakers keep a firm eye on inflation and the rising cost of U.S. dollar-denominated debt.

Analysts say that easing monetary policy may not come in overt moves like cutting the amount of cash that banks must hold as reserves, or the RRR — one of many policy tools that the central bank holds. Instead, China will likely seek targeted moves.

Reference: CNBC