China’s Bank told to loosen policy

China’s economic slowdown is likely to continue but inflation will keep easing, a key adviser to the country’s central bank predicted over the weekend. Song Guoqing said that growth could edge down further due to weaker global demand, also warning that China could even face a deflationary threat. Song’s dovish comments appear to increase the chance of more monetary easing, with the adviser adding that it was “very likely” that the reserve ratio requirement would be cut again.