Top Deutsche Bank economist Ma Jun says it’s because the central government is overriding the central bank, according to China Business News.
“It has been difficult to reach consensus on a rate hike,” Ma said in an interview in Hong Kong yesterday, noting that “the People’s Bank of China is not the final decision- maker of monetary policy.”
Rate decisions tend “to represent different interests in the economy, not just the inflation control objective,” said Ma, the No. 1 China analyst in polls by the magazine Institutional Investor and the top China economist in an Asiamoney survey.
This from a central government that jails suppliers over rising prices while writing editorials in support of the stock market. So far markets like the news, but concerns will move back to overheating.
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