Robust policy steps urged to spur economy

Experts advocate raising budget deficit, effecting RRR and interest rate cuts

China should further bolster its economy by stepping up fiscal and monetary policy support, including raising the budget deficit and effecting more cuts in the reserve requirement ratio and interest rates, said economists and analysts.

They said the country also needs to strengthen countercyclical adjustment and roll out new incremental policies soon to address the pressing challenge of still-weak domestic demand.

Their comments came as the latest data from the National Bureau of Statistics showed a mixed economic picture, with factory activity shrinking for the fourth consecutive month in August.