China’s NDRC Calls for Easier Monetary Policy to Counter Slower Growth

China’s National Development and Reform Commission (NDRC) has urged measures to reduce funding costs for businesses, increasing the pressure on the People’s Bank of China to implement looser monetary policies.

The influential economic planning agency emphasized the need for the government to carefully consider the timing for further reductions in interest rates and reserve requirements. This approach aims to facilitate increased borrowing for companies and stimulate fixed asset investment.

While the NDRC does not directly determine monetary policy, it participates in discussions regarding adjustments to interest rates and reserve ratios made by the State Council, China’s cabinet.

In its statement, the NDRC highlighted the significant downward pressure on fixed asset investment, noting that some provinces have experienced more substantial declines. For instance, reported fixed asset investment growth for June was 7.3% year-on-year, slightly down from 7.4% in May. The National Bureau of Statistics only provides year-to-date growth figures for investments.