A key advisor to the People’s Bank of China says liquidity expansions could be used in the short-term to prop up the Chinese economy.
The state-owned China Daily has quoted Liu Wei (刘伟), a member of China’s central bank monetary policy committee, as saying that there is still room to further adopt liquidity injection measures in order to sustain economic growth and financial stability.
Liu also said that despite the decline in the renminbi relative to the US dollar last month, Beijing remains confidence that the exchange rate will stay on a stable footing going ahead.
In a previous interview Liu said that while PBOC’s multiple liquidity adjustments this year would appear to conflict with the overall goal of deleveraging in the short-term, in the long-term these actions are consistent.
