Liu Shijin, a member of the People's Bank of China's (PBOC) monetary policy committee, tells a financial forum in Shanghai that Beijing's room for monetary policy easing is limited by widening interest rate differentials with the U.S.


Shanghai: China has limited room for further monetary policy easing, and it should pursue structural reforms such as encouraging entrepreneurs rather than counting on macroeconomic policies to revive growth, a central bank adviser said on Sunday.
Liu Shijin, a member of the People's Bank of China's (PBOC) monetary policy committee, told a financial forum in Shanghai that Beijing's room for monetary policy easing was limited by widening interest rate differentials with the U.S.
Fiscally, Chinese governments at various levels are under stress, he told the annual Bund Summit conference.
"If China continues to focus on macro policies in its efforts to stabilise growth, there would be more and more side effects," said Liu, vice president of the Development Research Center of the State Council.
"More importantly, we will again miss the opportunity for structural reforms."
China's post-COVID recovery has lost momentum amid weak consumption, falling exports and a deepening property debt crisis, and the economy is struggling despite a slew of monetary and fiscal measures to boost confidence.
Liu proposed on Sunday a new round of structural reforms that could aid the economy immediately, while also injecting long-term growth momentum.
They include demand-side reforms with a focus on giving migrant workers access to public services enjoyed by city dwellers, as well as supply-side reforms that involve igniting entrepreneurship in emerging industries, he said.
China's top economic planning body announced this month it would create a new department to help private businesses, as Beijing seeks to revive investor confidence hurt by government crackdowns on sectors ranging from the internet to private tutoring.
Courtesy: Reuters

Hania Aamir appointed as UN Women Pakistan’s National Goodwill
- 20 hours ago

Nestlé to slash 16,000 job adopting AI, automation systems
- 3 hours ago

Expelliarmus! How to enjoy Harry Potter while disarming J.K. Rowling.
- 20 hours ago

SBP reserves increase by $27 million
- 36 minutes ago

The disaster at the CDC, explained by its former boss
- 5 hours ago

Revolution in medical science, blood group of human kidneys successfully changed
- 2 hours ago

Lahore most polluted city in the world, Pakistan tops in air pollution
- 2 hours ago

India reduces Russian oil purchases by 50pc after intense US pressure
- 3 hours ago

Islamabad gets state-of-the-art 1.5 Tesla MRI facility
- an hour ago

Atlantic Council and Pakistan's Finance Minister discuss economic cooperation
- an hour ago

The world is producing more food crops than ever before
- 5 hours ago

Saudi Arabia’s comedy festival is no laughing matter
- 5 hours ago