PBOC Adviser Sheng: Urges for more pro-active fiscal policy and PBOC rate cuts

Sheng Songcheng, an adviser to the People's Bank of China (PBOC), the Chinese central bank, presses for more PBOC rate cuts and fiscal reforms by the government to counter the deflationary pressures.

Key Quotes:

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.

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.