China will need more stimulus if trade tensions rise – IMF staff


China’s authorities will need to implement additional stimulus – mainly fiscal – if trade tensions escalate further, International Monetary Fund staff said in a report published August 9.

Staff said China should also pursue a more flexible exchange rate policy with less intervention. The report said that deeper and better functioning foreign exchange markets would help the financial system prepare for greater capital flow volatility.

The value of the Chinese yuan was largely in line with

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