China should tighten its monetary policy: C. bank advisor

Xia, a former vice governor of the central bank, said that the country could afford to further raise required reserves. — File Photo

BEIJING: China should tighten monetary policy to staunch liquidity, and more measures should follow next year, an advisor to the central bank said in remarks published late on Saturday.

“We need to find ways to drain excessive liquidity, and adopt a suitably tightened and prudent monetary policy,” Xia Bin, an academic advisor on China’s central bank’s monetary policy committee said in an interview with a popular financial news website (www.hexun.com).