THE country’s economy should grow 6 to 6.5 percent next year, with a boost from “moderately loose” economic policy, a researcher at China’s top economic planner said late Tuesday, dismissing concerns there could be a sharp slowdown.

But Du Feilun, director of the Institute of Economic Research at the National Development and Reform Commission (NDRC), said China won’t revert to its “old path” of resorting to massive stimulus.

Du said that while there is “immense” short-term pressure facing China amid domestic challenges and the trade war with the United States, steady consumer price inflation provides headroom to tweak monetary policy.

“In the short term, there is not too much upward pressure on prices, thus it provides a good environment for economic operations and a good space for monetary policy adjustments,” he told a real estate forum in Beijing.

China’s consumer price index (CPI) rose 2.2 percent in November from a year earlier, slowing from 2.5 percent in October. The government’s full-year target for consumer price inflation is 3 percent.

“Policies will for sure be relatively accommodative. For example, China’s aggregate economic policy will be moderately loose next year to maintain steady growth,” said Du, who expects more measures to ramp up infrastructure investment, boost consumption and lower costs businesses face.

Du’s view that China won’t follow an “old path” of massive stimulus was in line with central bank governor Yi Gang’s comments last week that China’s monetary conditions should be relatively loose but not too much that the yuan currency takes a hit.(SD-Agencies)