Economics
China Rate-Cut Calls Gain Momentum as Top Economists Weigh In
- Rate cut needed to boost demand and ensure 5% growth: CF40
- Lower rates can facilitate more government bond issuance: Yu
This article is for subscribers only.
China should lower interest rates and increase infrastructure investment to ensure the economy will grow by at least 5% next year, according to an influential Chinese think tank.
Authorities need to boost domestic demand, including consumption and investment, to counter the property slump and any slowdown in exports, Zhang Bin and Zhu He, research fellows at China Finance 40 Forum, wrote in an article Monday. CF40 is a Beijing-based think tank whose members include People’s Bank of China Deputy Governor Chen Yulu and Sun Guofeng, the head of the bank’s monetary policy department.