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The end of deflation in China will ease corporate debt burdens and take pressure off the central bank

2 months ago
Sky Canaves
eflation is expected to reach minimal levels in China after more than four years of dragging down prices. The change will reduce real borrowing costs for companies, and allow the People's Bank of China to maintain interest rates and potentially reduce the risks of capital outflows.
By Sky Canaves
Sky Canaves previously reported for The Wall Street Journal in Beijing and Hong Kong, where she covered media, culture, social issues, and legal affairs, and served as the founding editor and lead writer of the WSJ’s China Real Time site. Prior to becoming a journalist, Sky worked in the China corporate law practice of Baker & McKenzie, and she has also taught journalism and media law at the University of Hong Kong. She speaks Mandarin and has accumulated more than a decade's experience living, studying and working in China.