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在线翻译:
szdaily -> Business
Central bank‘likely to play safe’
     2014-October-23  08:53    Shenzhen Daily

    THE central bank is likely to hold its line against an interest rate cut even as growth slows to a quarter-century trough, as the politics of reform influence the conduct of monetary policy, government sources involved in internal policy discussions say.

    The People’s Bank of China (PBOC) faces growing pressure to cut interest rates to support growth, but fears that could fuel debt and property bubbles while denting China’s reformist credentials have reduced the chances of any quick moves, according to sources close to the leadership and at top think tanks.

    Top leaders, who have pledged to stick with difficult reforms and eschew short-term stimulus to prop up growth rates, fear any major policy easing such as a cut in interest rates or broad cut in bank reserve requirements could be read as signs of backpedaling, the sources said.

    “The main problem is some people have drawn a parallel between cutting interest rates with strong stimulus,” said a former central bank researcher who asked not to be identified.

    The policy tone reflects President Xi Jinping’s talk of a “new normal” that China should adapt to slower but more sustainable growth after three decades of breakneck expansion.

    Stimulus has become a toxic word in the country, which is still nursing the hangover from a 4 trillion yuan (US$650 billion) spending package in 2008-09 that created a mountain of debt.

    “Cutting interest rates is a major policy decision which is also very sensitive at the moment,” said a senior economist at the Development Research Center, the Cabinet’s think tank.

    “It will be the last-resort policy that cannot be used easily,” said the economist, who requested anonymity as he is not authorized to speak to the media.(SD-Agencies)

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