-
Important news
-
News
-
Shenzhen
-
China
-
World
-
Opinion
-
Sports
-
Kaleidoscope
-
Photo Highlights
-
Business
-
Markets
-
Business/Markets
-
World Economy
-
Speak Shenzhen
-
Leisure Highlights
-
Culture
-
Travel
-
Entertainment
-
Digital Paper
-
In depth
-
Weekend
-
Lifestyle
-
Diversions
-
Movies
-
Hotels
-
Special Report
-
Yes Teens
-
News Picks
-
Tech and Science
-
Glamour
-
Campus
-
Budding Writers
-
Fun
-
Futian Today
-
Advertorial
-
CHTF Special
-
FOCUS
-
Guide
-
Nanshan
-
Hit Bravo
-
People
-
Person of the week
-
Majors Forum
-
Shopping
-
Investment
-
Tech and Vogue
-
Junior Journalist Program
-
Currency Focus
-
Food Drink
-
Restaurants
-
Yearend Review
-
QINGDAO TODAY
在线翻译:
szdaily -> Business/Markets -> 
Policy tools adequate for economic strain
    2018-12-14  08:53    Shenzhen Daily

ALTHOUGH external uncertainties abound and downside risks have emerged, China’s policymakers have many economic levers at hand to deal with challenges, analysts have said.

“The country has plenty of room to maneuver its policies, and is capable of maintaining stable economic growth in a turbulent global environment,” said Yan Se, a professor at Peking University.

Huang Jianhui, head of research institute under China Minsheng Bank, said: “Among the policies, the authorities have to find the right balance between ensuring stable growth, restructuring the economy and preventing major risks.”

China’s economy has remained in firm shape this year, expanding 6.7 percent in the first three quarters and on track to meet the government’s annual target of around 6.5 percent.

However, latest indicators revealed signs of stress in the economy. Although factory activity continued to expand, the manufacturing purchasing managers’ index declined for a third month in a row last month to 50, which is the benchmark that separates expansion with contraction. Growth of exports and imports also slowed in November.

Inflation remained mild, with growth of the consumer price index declining to 2.2 percent last month, which analysts expected to ease further next year, making it easier for the central bank to maintain liquidity at a reasonable and sufficient level.

“We still have enough room to adjust monetary policy tools, in terms of interest rates, reserve requirement ratio (RRR) and monetary conditions among others,” said Yi Gang, governor of the People’s Bank of China, the central bank.

The country’s monetary policy remained prudent and neutral, neither too loose nor too tight, Yi said at the G30 International Banking Seminar 2018.

Looking forward, Lian Ping, chief economist of Bank of Communications, expects the country’s monetary policy to prioritize ensuring stable growth in 2019.

The central bank may further cut the RRR in 2019, but at a milder extent and lower frequency compared with this year, Lian said, adding that the likelihood of cutting the benchmark interest rates would remain low.

He expects the country’s fiscal policy to be more proactive next year, with the budget deficit ratio rising to 3 percent from 2.6 percent in 2018, further reduction of taxes and fees, and more efficient use of fiscal funds. (Xinhua)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn