Xinhua News Agency reports (via MNI) on commentary from Ma Jun, chief economist of the PBOC's research bureau:
- Says the interest rate and deposit reserve ratio cuts don't represent a shift in monetary policy bias
- China's "monetary policy remains prudent and neutral"
- Saiys recent volatility in international financial markets could have an impact on China's economy
- Could also impact on the financial stability of some countries
- Says it was necessary to cut interest rates and deposit reserve ratio to stabilize market expectations at home and abroad
- Economy has shown signs of stabilization since Q2 ... but the foundation is not solid
- Recent slump in commodity prices will put pressure on price growth, resulting in rising real interest rates
