PBOC adviser urges rate cuts at the Bank, and more fiscal support from government

Author: Eamonn Sheridan | Category: Central Banks

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

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