Central bankers and International Monetary Fund (IMF) officials agree with Beijing that a slowdown in the Chinese economy is healthy and that there is no need for further monetary easing, Bloomberg News reported Monday.
Moderation will put the world’s second-largest economy on a more sustainable expansion path, which will benefit both China and Asia, Malaysia’s central bank chief Zeti Akhtar Aziz was quoted as saying in an interview.
Markus Rodlauer, deputy director of IMF’s Asia Pacific Department, said in a briefing last Friday that the balance between expansion and structural reforms that China is seeking is right so far, according to the report.
“China’s slowdown is a healthy correction, in many ways an engineered slowdown,” Jorge Mariscal, Chief Investment Officer for Emerging Markets at UBS AG, was quoted as saying in an interview in Washington over the weekend.
“So far, this rate of decline of the economy isn’t so concerning to justify a very aggressive stimulus program, whether fiscal or monetary.”
Chinese Premier Li Keqiang said last week that China has already achieved its employment target for 2014. Stamina and perseverance are as important as speed in the economic policy mix, underlining why China has avoided stimulus measures to help meet its growth target, he said.
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