- ORIGINAL NEWS
China’s central bank governor says there’s room to cut banks’ reserve requirements
- SUMMARY
China’s central bank and economic planning agency recently signaled their willingness to support economic growth.
The central bank governor indicated there’s room to lower the amount of cash banks are required to hold, releasing more funds into the economy.
They also plan to support consumer spending by stabilizing prices.
The economic planning agency emphasized the need for coordinated fiscal, monetary, and other policies to address challenges like the real estate downturn and weak demand.
They acknowledged difficulties but expressed confidence in their policy tools.
China’s Finance Minister declared local debt manageable, outlining efforts to control risks and resolve hidden debts.
Officials emphasized the importance of pursuing around 5% economic growth while maintaining a 3% fiscal deficit.
They highlighted the need to boost domestic consumption and expressed optimism about innovation and investment-led growth.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“China will ‘continue to strengthen macroeconomic policies,’ said Zheng Shanjie, chairman of the National Development and Reform Commission, the country’s economic planning agency.”
“Pan Gongsheng, governor of the People’s Bank of China, told reporters Wednesday there was room to further cut banks’ reserve requirements — the amount of cash they need to have on hand.”
Negative
“China’s consumer prices saw their biggest drop in January since 2009, while producer prices declined for a 16th month — underscoring the depth of the challenge that Beijing faces in reflating the world’s second-largest economy.”
“Zheng, the NDRC chief, said China’s exports for the January-February period increased by 10% from a year ago, but did not specific if this was in Chinese yuan or U.S. dollar terms.”