Yet the US dollar keeps appreciating, much to the annoyance of US President Donald Trump.
Beijing can discipline traders and take the long view, it can also co-ordinate fiscal and monetary policies.China's central bank, however, can also be said to be the world's least independent because it has to heed the will of the Politburo, headed by President Xi Jinping.CHINA'S state-driven economic model has created many problems. Monetary policy isn't one of them.
Increasingly, developed nations' central bankers are using up the ammunition they have available to support their economies in the event of a downturn. That's particularly evident with the Fed this year. Traders now expect chairman Jerome Powell to cut rates by at least another half-percentage point by the end of 2020, the most among G-10 nations. A stronger dollar, unfortunately, damps expectations for consumer inflation, the key metric Mr Powell is trying to lift.
The chances are that a September cut is also inevitable, because futures traders have already priced in a 60 per cent probability. It's a foregone conclusion that China won't cut rates right now, because the latest Politburo meeting used the key phrase that "an apartment is to be lived in, not speculated on".
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