Interest rate cuts are needed to combat weak domestic demand in China, MNI reports, citing comments from Zhang Bin, Deputy Director of the Institute of World Economics and Politics at the state-affiliated think-tank the Chinese Academy of Social Sciences.
Key quotes
"Sluggish services and tepid investment in property and infrastructure come against a backdrop of low near-term domestic inflation."
"I am more worried about next year when the downturn trend sustains as exports fail to rise strong enough to fill the gap caused by soft consumption and investment,"
“A wise choice to boost the growth outlook is encouraging the private sector to re-leverage and increase spending with ample liquidity and loans at lower interest rates.”
“The old-growth reliance on government debt expansion has limited space.”
"Monetary policy should take the leading role in boosting the general demand, which is positive policy change."
Read: China's yuan basket index hits fresh five-year highs