China's NDRC demands easier monetary policy to compensate slower growth
On Wednesday, China's National Development and Reform Commission called for further steps to drop funding costs for companies, thus contributing to the ongoing pressure on the People's Bank of China to loosen its current monetary policy.
The powerful economic planning agency reported that the government should pick the right time just to keep lowering interest rates as well as deposit reserve ratios for the purpose of helping companies to borrow more and drive fixed asset investment.
In fact, the NDRC has nothing to do with China's monetary policy, though it boasts a seat at the table for decisions on interest rate as well as deposit reserve ratio adjustments carried out by the State Council, the country's cabinet.
In its statement, the NDRC told downside pressure on fixed asset investment doesn’t appear to be negligible and some provinces witnessed a greater dip in investment. Additionally, the NDRC told that fixed asset investment in June surged 7.3%, compared to May’s outcome of 7.4%.