Beijing: Signs that China’s economy is stabilising have kicked off a debate about whether the central bank should keep injecting liquidity into financial markets, with a former senior official warning of the risk of asset bubbles.
The People’s Bank of China (PBoC) should decide whether to cut the amount of money lenders must hold as reserves only after seeing more economic data, such as first-quarter gross domestic product due April 17, Sheng Songcheng, a former director of the PBoC’s statistics and analysis department, said in an interview with Economic Information Daily published yesterday.