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