More - PBOC advisor sees room for further easing in monetary policy

Greg had the headline a few hours ago: PBOC advisor sees room for further easing in monetary policy

A bit more detail (via Bloomberg):

• Comments from People’s Bank of China adviser Huang Yiping
• Speaking in an interview
• Fiscal policy has room for easing as the China government's debt-to-GDP ratio is under 50%
• Says GDP growth may be 6.9% in Q4, slowing to 6.6% in 2016
• Large deflation pressure currently
• OK to let some bonds default, as long as the whole mkt doesn't collapse

On the yuan:

• Timing of China's Aug. 11 yuan reform had some issues
• Led to large-scale depreciation of the yuan
• PBOC's forex management under such situation is understandable
• No big problems with letting yuan become more flexible