Central bank advisor says loose policy certain to wind down By Ma Yuan BEIJING (Caixin Online) — A member of the central bank’s monetary policy committee said Saturday that the very loose monetary policy adopted in the past two years must change. Li Daokui, who was added to China’s monetary policy committee earlier this year, said the loose monetary policy was introduced to stimulate the economy affected by a sharp export decline in the wake of the global financial crisis. Li said that China will maintain its proactive fiscal policy, including a tax cut for households. He said reforms of the finance sector will be carried out steadily in the next five years, including improving direct financing, boosting the capitalizations of stock markets and reducing the dependence of companies on banks for credit. He said that the major driver for economic growth in the next decade should be domestic consumption, which will be pushed up by private investment. See this report on Caixin Online.

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