China’s central bank governor said there was room to further reduce bank deposit reserve ratios and pledged to use monetary policy to support consumer prices.
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BEIJING – China’s central bank governor said there is room to further reduce bank reserve ratios and pledged to use “moderate” monetary policy to support consumer prices.
This is part of Beijing’s broader economic policy “adjustment” so that the economy can achieve its growth target of around 5% this year while sticking to a 3% fiscal deficit. Plans to issue “ultra-long” special bonds for major projects will also help achieve this goal.
Pan Gongsheng, governor of the People’s Bank of China, made the remarks at a joint press conference with other key leaders in China’s economic and financial sectors during this year’s two sessions on Wednesday.
China’s growth targets and economic plans for this year, released in the annual government work report on Tuesday, fell short of many analysts’ expectations for further stimulus measures and raised questions about how China can achieve another 5% economic growth. The national GDP will grow by 5.2% in 2023, higher than the low base in 2022.
For investors, the biggest concern in the short term remains the extent to which Chinese policymakers focus on ensuring growth.
“In order to achieve this (target of about 5%), the government work report proposes many major policies,” Huang Shouhong, leader of the report drafting group and director of the State Council Research Office, told reporters in Mandarin on Tuesday. Reported by CNBC.
He said: “If China’s economy encounters an unexpected impact in the future, or the international environment undergoes unexpected changes, we still have tools in reserve in our policy toolbox.”
This is a development story.Please check back for more updates.
