Zhang Xiaohui, head of the People’s Bank of China (PBOC)’s monetary policy department:
- Says China’s economy remains over-reliant on investment
- Warned that debt levels can’t go much higher from here
- Monetary policy-makers will need to proceed cautiously in 2015
- The official “prudent” monetary policy stance is designed to “create a neutral and appropriate monetary and financial situation”
- The government should “prevent the economy’s slide into inertia while avoiding excessively “adding water” which would solidify structural distortions and push up debt and leverage levels”
