China should avoid overly loose monetary policy – PBOC’s Yi

Yi Gang, Deputy Governor of the Chinese central bank (PBOC) is crossing the wires now, speaking at the structural reform forum in Beijing.

Key Headlines:

Over supply and lack of supply exist at same time

China needs structural reform and total demand management

China should avoid overly loose monetary policy

China’s current prudent monetary policy avoids excessive loosening of credit conditions

Excessive loosening of monetary policy will create asset bubble and increase downward pressure on Yuan

Job mkt still good as China labor force shrink

Money policy to prevent overly liquidity inject

Overly loose mon pol may bring depreciation