Nikkie (Japanese press) on the call from the Chinese Academy of Social Sciences earlier this week to expand the budget deficit by at least 1.3 trillion yuan ($182 billion) this year to fund more economic stimulus.
CASS called for stimulus measures such as
- distributing consumption vouchers to middle- and low-income households
- urged swapping local government bonds for bonds issued by the central government to ease repayment pressure on debt-burdened local economies
- further interest rate cuts by the People’s Bank of China
- stressed the need to provide support to private real estate developers
Nikkei report is here for more (may be gated)
This article was written by Eamonn Sheridan at www.forexlive.com.
