PBoC Gov Zhou: China needs to be vigilant for signs of deflation; May update laws on currency controls; Sees room for more rate cuts - financial press
- Policymakers are monitoring global economy and decline in commodity prices.
- Monetary policy is normalizing to a "new normal."
- Says: "Inflation in China is also declining. We need to have vigilance if this can go further to reach some sort of deflation or not... This year, we may be able to thoroughly update the laws on foreign exchange controls... If we can set up new rules, we will have basically established free capital account convertibility... China still has room to adjust both price [interest rate] and quantitative... We can employ comprehensive policy measures to adjust the economy."