Latest cut suggests more support
Expert: Sensible to avoid 'following old path' of relying on infrastructure
Additional stimulus measures are needed to consolidate China's economic recovery following an interest rate cut on Tuesday, and such moves should be compatible with the country's high-quality development pursuit and avoid any worsening of the economic structure, experts said.
"The economy needs an appropriate amount of stimulus at this moment as growth momentum weakens. The more important question is how the stimulus is delivered," said Shao Yu, chief economist at Orient Securities.
It is sensible to avoid "following the old path" of mainly stimulating infrastructure investment and the property market, which can stabilize the economy over the short term but could have long-term side effects of impeding economic restructuring, said Shao, who is also an expert member of the monetary policy committee of the People's Bank of China, the nation's central bank.