«Economical» from Riyadh
Yi Gang, the governor of the People's Bank of China, said his country will not press for a significant easing of monetary policy and will not introduce a huge economic stimulus package unlike other central banks in the world.
According to 'German', Zhang emphasized in a press release that all financial risks were generally limited, and to address problems in the so-called parallel banking sector and some large institutions.
Yi spoke at a joint press conference in the presence of Finance Minister Liu Kun and Ning Jixi, President of the National Bank of China (NBS).
Prior to a press conference, the Chinese central bank said in a statement that interest rates are adequate, inflation remains relatively moderate and the central bank will remain patient.
"We are not in a hurry to introduce large interest rate cuts or quantitative easing policies, as some other central banks do," said Yi.
Although China's economic growth has slowed to its lowest level in almost 30 years, the central bank continues to refuse to introduce additional stimulus measures as it continues to try to limit the financial risk that has threatened China.
This is happening at a time when China's industrial production recorded the lowest monthly growth rate since 2002 last month, while China's exports dropped unexpectedly with falling (wholesale) producer price inflation to less than zero percent. Economic data are increasing the pressure on the central bank to take steps to support the economy in the face of the risk of additional tariffs on all Chinese products in the United States and the global economic slowdown. Analysts expected a reduction in interest rates in China in the coming days due to the slowdown in the world's second largest economy, which is associated with the risk of global economy growth.
Economic data support the argument that Chinese monetary policy efforts to break the slowdown are not enough because structural pressure on the Chinese top of the economy, said Bloomberg News, citing analysts from financial adviser Nomura International Limited.
The institution's analysts said that these conditions increase the likelihood that the People's Bank of China (central bank) will lower interest rates on medium-term loans. "When it comes to politics, we think there is a lot of room for maneuver for policy makers in both the Ministry of Finance and the People's Bank of China," said Helen Xiao, Bank of America chief economist Merle Lynch on Bloomberg television. "If they want to use them, I'm worried that Chinese decision-makers are hesitating at the moment because of potential long-term implications, so they're late."