China looks to boost fiscal stimulus

FXStreet (Bali) - A story published this morning by Kevin Yao, Editor at Reuters, is getting plenty of attention, suggesting that China is considering a shift in its strategic growth plan, looking to step up spending as the broad view is that easing is not having the impact initially expected. according to a Chinese think-tank.

Reuters quotes an economist at a well-connected think-tank, noting that top policy'makers "are very worried", adding that "if they don't take bolder measures, it will be very hard to achieve the full-year growth target, and there is risk the slowdown may get out of control."

"Fiscal policy will become more forceful, and infrastructure investment will accelerate, while monetary policy will be more flexible" the unnamed source being quoted by Reuters added.