Caixin Covers the Interest Rate Spat Between Xinhua and PD; Beijing Youth Daily Calls It a Fairy Fight

Xinhua, People's Daily in Rare Tussle, over Rate Cuts
Xinhua News Agency and People's Daily have crossed swords over who has more faith in policymakers' determination to push through economic reforms and whether it is fine to cut interest rates, a rare public display of friction for the state media outlets.

Fears that China is falling short of the government's growth target for this year and calls for strong stimulating policies such as reducing interest rates have gained momentum, after August's weak economic data was published, an article published by Xinhua's website said on September 16.

"Looking back at the past few months, voices like this were heard at home and abroad almost every time monthly and quarterly economic data came out," the article says. "This means the speakers do not see clearly the 'new norm' of China's economy and lack faith in the reform that China has been pushing forward with force."

The article they site in the article came out a day before the one I saw: “强改革+巧调控”:中国经济持续健康发展“稳定器”

That was the first shot. The People's Daily rebutted with: Rate Cuts Not The Opposite of Reform

Xinhua fired back: Still Not Time For Rate Cuts; Don't Quench Thirst With Poison

Technically the PD is correct, but Xinhua is right on policy. It is not yet time for rate cuts.

However, if you want to know what the leadership thinks, turn to the Beijing Youth Daily, put out by the Communist Youth League. They summed up the two sides and called it a fairy fight.


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