People's Bank of China adviser hints at further easing

A People's Bank of China adviser has highlighted the "room for further easing in monetary policy", according to reports late on Monday.

The news, which was reported by Bloomberg at what was 0200 in Beijing time, comes as Chinese officials kicked off a four-day plenary meeting at which the country’s policy agenda will be set for the next five years.

Last Friday the PBoC cut interest rates for the sixth since November last year, as authorities there strive to prop up the flagging economy, though the timing came as something of a surprise for the market, which remains concerned the central bank will need to cut further.

Commenting on the fifth plenum meeting, Capital Economics in London said: "Any snippets that reaffirm the government’s commitment to structural reform and a rebalancing of the economy onto a more sustainable path are likely to be greeted positively by investors – not least because concerns about the outlook for China’s economy were the trigger for the summer sell-off."

Over the weekend Chinese premier Li Keqiang claimed he never said the economy had to grow 7% in 2015.

"We have never said that we should defend to the death any goal, but that the economy should operate within a reasonable range," Keqiang was paraphrased as saying in a statement.

"The hard work of people up and down the country and the enormous potential of China's economy gives us more confidence that we can overcome the various difficulties."