China central bank adviser calls for greater stimulus, inflation goal

China's central bank cut key interest rates in a surprise move July 22, 2024 aimed at injecting new life into its ailing property sector, while the ruling Communist Party released details of a top-level meeting focused on strategies for revving up the slowing economy. – AP

BEIJING: China should ramp up its fiscal stimulus to spur economic growth and set a firm inflation target to prevent the country falling into a "low inflation trap", a central bank policy adviser said in remarks seen on Friday (August 2).

China's leaders signalled this week that fiscal support for the rest of the year will "focus on consumption", aiming to boost incomes and social welfare, following plans to use funds from government bonds to finance trade-ins on consumer goods.