Stimulating Stock Prices to Boost Confidence

The central bank's introduction of facilities for companies to buy back shares and for institutional investors to borrow funds marks a significant shift in policy, where immediate stock price stimulation is used to revitalize market confidence amid economic gloom. This approach, while atypical as it prioritizes stock market behavior over economic fundamentals, aims to enhance investor sentiment. The proposed stimulus package is seen as potentially effective, stressing the need for direct support to households and recognizing the limitations of traditional public investment. It also seeks to assist local governments facing fiscal pressure and large debts, addressing their impact on the business environment and overall economy.