Wants a more pro-active fiscal policy & People's Bank of China rate cuts

Sheng Songcheng is an adviser to the People's Bank of China , with the advice.

More:

  • China does not face the same deflationary pressures that exist overseas
  • fiscal policy measures should be the first consideration
  • monetary policy playing a supporting role

Sheng quoted in Yicai (a financial magazine in China), comes via rtrs Reuters

More again:

  • Sheng said that policymakers should pursue fiscal solutions as a priority, including
  • front-loading the issuance of local government bonds to support infrastructure projects
  • continued cuts to taxes and fees

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Background to this is last week's PBOC cut to the one-year MLF rate last week by five basis points, the first such cut since early 2016.

  • PBOC has cut RRR seven times since early 2018