Zhou Xiaochuan, governor of China’s central bank, hinted at a possible stimulus package to cushion the impact of the global financial crisis on the economy.
Although he believes investment and consumption are proving resilient, Zhou told a Hong Kong television station that it may be necessary ‘to increase domestic demand further.’ Whilst not spefically addressing property the flow-on effect is obvious and needed.
The government has already cut interest rates twice in recent weeks.
China’s third-quarter economic data, due for release on Monday, are expected to show that GDP growth dropped below 10% from 10.1% in the second quarter and 11.9% for 2007 as a whole.
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