Liu Shijin is a member of the People’s Bank of China’s (PBOC) monetary policy committee. He is also vice president of the Development Research Center of the State Council. He spoke at the annual Bund Summit conference in Shanghai.
He said that China has limited room for further monetary policy easing, citing widening interest rate differentials with the U.S., and should not count on macroeconomic policies to revive growth. Instead, the country should focus on structural reforms. such as encouraging entrepreneurs rather than counting on macroeconomic policies to revive growth, a central bank adviser said on Sunday.
- “If China continues to focus on macro policies in its efforts to stabilize growth, there would be more and more side effects,”
- “More importantly, we will again miss the opportunity for structural reforms.”
Info comes via Reuters.
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Structural reforms are great, but in the short term admitting ‘limited policy room’ at the PBoC will weigh on China risk trades at the margin.
PBoC