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Roach Says China Has Scope for More Rate Cuts as Inflation Slows

China has scope for further reductions in interest rates as growth and inflation slow in the world’s second-largest economy, according to Stephen Roach, former non-executive chairman for Morgan Stanley in Asia.

“The People’s Bank of China has plenty of ammunition left,” Roach, a professor at Yale University in New Haven, Connecticut, said in an interview with Bloomberg Television. “There’s plenty of room for additional easing, and actually their interest rates are pretty high in inflation-adjusted, or real terms.”