Ex-PBOC Member: China needs expansionary policy

Statements from a former People's Bank of China (PBoC) MPC member, Yu Yongding, are hitting the wires as Yu stresses the need for China to begin opening the flood gates in order to head off any further economic declines.

Key highlights

China's most pressing issue is to halt any further economic declines.

China must adopt expansionary fiscal policy, as well as loose monetary policy.

China's current inflation rate is only around 2% according to Yu, and the economic growth rate is still declining.

"The ratio of China's deficit-to-GDP ratio may exceed 3% in the future, and this is not an untouchable level" - Yu Yongding