Comments by a PBOC policy adviser via Reuters
- Should also improve the MPA mechanism
- Should use policy interest rate to replace bank lending and deposit rates over time
- Should let financial oversight body coordinate fiscal, monetary policies, and macro-prudential assessment
In essence, what he's suggesting is a more narrow interest rate corridor as well as a consolidation of authority. The latter is what we have already seen this year although it is not something which is in black and white.
PBOC governor Yi Gang may look as though he stands independently but he very much has his hands tied by Beijing when it comes to policy decisions.
