China central bank says no plans for big economic stimulus

A man carrying a national flag walks with his colleagues past by a floral decoration for the 70th anniversary of the founding of the People's Republic of China, on display along Chang'an street in Beijing, Tuesday, Sept. 24, 2019. China's central bank governor says policy will stay "stable and healthy," suggesting Beijing has no plans to join the United States and Europe in cutting interest rates to stimulate economic growth. (AP Photo/Andy Wong)

BEIJING — China's central bank governor said Tuesday its monetary policy will stay "stable and healthy," suggesting Beijing has no plans to join the United States and Europe in cutting interest rates to stimulate economic growth amid a tariff war with Washington.

The People's Bank of China will avoid a "massive stimulus," Yi Gang said at a news conference.

Beijing is trying to shore up cooling economic growth amid a tariff war with Washington but is wary of reviving a rise in debt levels that are so high that rating agencies have cut China's credit rating.

"We believe that for our monetary policy we should stay committed to our own course and stick with an orientation that is stable and healthy," Yi said.

China's economic growth hit a three-decade low of 6.6% in 2018, adding to pressure on Beijing to expand stimulus measures. The ruling Communist Party is trying to shift to growth supported by domestic consumption instead of exports and investment but loosened lending controls after growth declined faster than planned.

Despite that, regulators have affirmed that reining in corporate and household debt is a priority.

"We must not adopt massive stimulus packages," Yi said. "We must make sure the leverage rate remains stable so that the total debt level remains sustainable."

People also read these

US tycoon's China scholarship project opens doors...

Sep 10, 2016

A new scholarship program intended to rival the prestigious Rhodes Scholarships and build...

China says it can't end North Korea nuke program...

Sep 12, 2016

China says the United States has inflamed the conflict on the Korean Peninsula and must carry the...

China launches second space station, Tiangong 2

Sep 15, 2016

China has launched its second space station in a sign of the growing sophistication of its...

China pledges further cuts in excess steel, coal...

Jan 10, 2017

China's top economic planner has pledged to continue cutting steel and coal production, which have...

Chinese factory makes giant inflatable...

Jan 13, 2017

A Chinese factory has been doing a brisk business selling giant inflatable roosters, some as tall...

About Us

Frontal Report is an emerging leader in all forms of media. We aim to be the leading news brand for readers around the world.

Contact us: sales[at]frontalreport.com

Subscribe Now!