China will not use any large-scale stimulus to boost its economy at the moment, Oriental Morning Post reported Sunday, citing People’s Bank of China governor Zhou Xiaochuan.
Asked whether the central bank will consider cutting the deposit reserve requirement ratio for commercial banks, Zhou told a forum in Beijing that short-term economic data does not necessarily confirm there are problems and any conclusion must be prudent. He also said the PBoC is always fine-tuning its policies, although some of its actions may not be visible to the market.
His comments came after China’s consumer price index, a main gauge of inflation, rose 1.8 percent in April from a year earlier, down from a 2.4 percent growth in the previous month. The country’s GDP grew 7.4 percent in the first quarter from a year ago, its lowest expansion in 18 months.
In the first-quarter report on monetary policy Thursday, the central bank pledged to maintain continuity and stability of its policy as well as to take initiatives to conduct timely fine-tuning.
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