China should focus on fighting deflationary pressure, former central bank governor says

Published On Sep 6, 2024, 2:59 AM

Yi Gang, the former governor of the People's Bank of China (PBoC), emphasized the need for Chinese policymakers to combat deflationary pressures and stimulate domestic demand during a speech at the Bund Summit in Shanghai. He expects the consumer price index to settle above zero by the end of the year, despite current low inflation rates. Yi called for proactive fiscal and accommodative monetary policies to address the weak consumer sentiment rooted in concerns like the real estate market and local government debt.