Why PBOC Raised Market Borrowing Costs

The transcript discusses the influence of the Federal Reserve on currency stability and the concerns about capital outflows due to rate hikes. It explains the reasons for policy normalization, including the gradual removal of liquidity from the market and the signaling of economic stability. The discussion also covers the economic conditions and inflation in the US and China, highlighting the end of emergency stimulus measures in both countries.

What does the speaker mean by 'normalizing policy'?

What is the significance of the emergency stimulus period mentioned in the context of the US and China?