China CASS says economic stimulus should be boosted by around US180bn by increased deficit

<p>Nikkie (Japanese press) on the call from the Chinese Academy of Social Sciences earlier this week to expand the budget deficit by at least 1.3 trillion yuan ($182 billion) this year to fund more economic stimulus. </p><p>CASS called for stimulus measures such as</p><ul><li> distributing consumption vouchers to middle- and low-income households</li><li>urged swapping local government bonds for bonds issued by the central government to ease repayment pressure on debt-burdened local economies</li><li>further interest rate cuts by the People's Bank of China</li><li>stressed the need to provide support to private real estate developers</li></ul><p><a href="https://asia.nikkei.com/Economy/China-should-add-180bn-to-deficit-for-stimulus-state-think-tank#:~:text=BEIJING%20–%20China%20should%20step,state-affiliated%20think%20tank%20says." target="_blank" rel="nofollow">Nikkei</a> report is here for more (may be gated)</p>

This article was written by Eamonn Sheridan at www.forexlive.com.