For the best chance to re-energise the country’s economy in one fell swoop, the former adviser to the People’s Bank of China said in an exclusive interview, the government should quantify its stimulus plan as soon as possible – ideally with a detailed timetable.
“With only three months left in the year, rushing into battle may have serious side effects,” Yu said. “If it’s too late this year, we can continue next year. Actions cannot be rushed, but the release of policy signals cannot be delayed.”
The world’s second-largest economy had displayed a reluctance to unleash an all-out stimulus over the past decade, despite multiple trying moments.
But a shift in direction has been observed since last month. Most notably, the Politburo – a major decision-making body of the Communist Party – convened an unexpected meeting on September 26, where President Xi Jinping exhorted officials across the nation to prioritise economic revival and help achieve the country’s annual growth target of “around 5 per cent”.
