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Former PBoC head urges efforts to fight deflationary pressure

Yi Gang highlights weak domestic demand and need for fiscal and monetary support

Yi Gang
Yi Gang speaking at the World Economic Forum
Photo: World Economic Forum

A former governor of China’s central bank said today (September 6) that the country’s policy-makers “should focus on fighting deflationary pressure”.

“Overall, we have the problem of weak domestic demand, especially on the consumption and investment sides,” Yi Gang said during a panel discussion at the Bund Summit in Shanghai. “So that needs proactive fiscal policy and accommodative monetary policy.”

Consumer prices rose 0.5% year on year in July, compared with 0.2% in June. Producer prices fell 0

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