Greg had the headline a few hours ago: PBOC advisor sees room for further easing in monetary policy

A bit more detail (via Bloomberg):

  • Comments from People’s Bank of China adviser Huang Yiping
  • Speaking in an interview
  • Fiscal policy has room for easing as the China government's debt-to-GDP ratio is under 50%
  • Says GDP growth may be 6.9% in Q4, slowing to 6.6% in 2016
  • Large deflation pressure currently
  • OK to let some bonds default, as long as the whole mkt doesn't collapse

On the yuan:

  • Timing of China's Aug. 11 yuan reform had some issues
  • Led to large-scale depreciation of the yuan
  • PBOC's forex management under such situation is understandable
  • No big problems with letting yuan become more flexible