PBOC adviser says that monetary policy cannot be so loose that it undermines deleveraging efforts
Further comments by China's central bank adviser
- Monetary policy needs to provide enough liquidity support for the economy
- It's normal for China's economic growth to slow further
- Monetary policy should react when there is relatively big downward pressure on the economy
In case you missed it, there were reports earlier in the day hinting at a possibility of RRR cuts by the PBOC next month. This may help to quash those rumours a little but it still doesn't rule out any further easing by the central bank in order to boost liquidity in the economy, particularly when they are continuing to tighten credit.