Ma Jun, chief economist of the research bureau under the PBOC

  • Says recent PBOC deposit reserve and interest rate cuts were not meant to create a strong stimulus effect
  • Simply to maintain a neutral monetary policy position
  • Said capital inflows no longer providing funds for the Chinese economy, liquidity could be tightened if the PBOC didn't cut deposit reserves or use other policy tools
  • Rate cuts were also aimed at keeping real interest rates stable due to falling producer prices
  • Says the government could adjust economic policy again should downside pressure on the economy become worse than expected

via MNI