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China's Monetary Policy Should Remain Flexible-Ex-PBOC Official

CHINA
MNI (Singapore)

China's monetary policy should remain flexible and save ammunition as the country may suffer imported inflation in the medium term, and any easing via big rate cuts and liquidity injections should be cautious, said Hu Xiaolian, former official of the People’s Bank of China said on Saturday in Caixin Summer Summit. China needs to guide markets to prevent any “self-reinforcement” of inflation expectations, said Hu, now head of Export-import Bank of China. Inflation is still a key factor impacting market expectations and potential recessions abroad will also hurt China’s confidence,

she said.

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