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Policies Needed To Ease Deflation Concerns- Guantao

CHINA PRESS
MNI (BEIJING)

China should combine policies that support domestic demand and deepen supply-side structural reforms to ease the markets deflation concerns, according to Guantao, former director of the State Administration of Foreign Exchange. Authorities should ensure chosen policies can stimulate real economic demand and not cause financial bubbles, and zombie companies. Economic reforms are needed to improve employment and incomes, Guan said. The central bank should remain cautious when relying on money growth to raise prices in response to deflation worries and should take a lessons-learnt approach from the recent turmoil in the European and American banking sectors.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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