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CHINA-ECONOMY-TRADE-PBoC
China says in ‘no rush’ for economic stimulus
BEIJING, Sept 24, 2019 (BSS/AFP) – China is in “no rush” to add a monetary
stimulus to cope with downward pressure on the world’s number-two economy,
the head of the country’s central bank said Tuesday.
A lingering trade war with the United States and cooling growth has raised
expectations that Beijing may resort to an a round of stimulus measures to
provide a kickstart.
Major central banks, including the Federal Reserve and the European Central
Bank, have also cut borrowing rates or signalled the willingness to do so in
recent months.
But People’s Bank of China boss Yi Gang said told a news conference: “We
are not in a rush to act as central banks of some other countries have done.”
He said there was no pressing need for big policy easing steps or to
further cut the amount of cash lenders must keep in reserve to release more
money into the stuttering economy.
“Monetary policy must remain prudent,” he said, adding that there was ample
room for both fiscal and monetary policy manoeuvering.
Earlier this month, the PBoC slashed reserve requirement ratios for banks,
freeing up about $126 billion to boost lending to mostly small and medium
enterprises.
China’s economy showed signs of strain as industrial output in August grew
at the slowest pace in 17 years and as investment and retail sales flagged.
“There is indeed downward pressure on the whole world economy,” Yi said.
“But our overall judgement is that China’s current economic operations are
still in a reasonable range,” he said.
The economy expanded 6.2 percent in April-June, the worst reading since the
early 1990s but in line with forecasts and within the government’s target
range.
Beijing was taking steps to boost domestic consumption and investment, and
contain financial risks to battle economic headwinds, National Bureau of
Statistics head Ning Jizhe said at the same news conference.
China’s economy has also been hit by a bruising trade spat with the United
States, with the two sides swapping tariffs on a total of $360 billion worth
of goods.
Washington and Beijing have recently extended olive branches ahead of trade
talks next month with the US delaying a new round of tariffs by two weeks and
China exempting some products from punitive duties.
BSS/AFP/SR/2015 HRS