China central bank says no plans for big economic stimulus

A man carrying a national flag walks with his colleagues past by a floral decoration for the 70th anniversary of the founding of the People's Republic of China, on display along Chang'an street in Beijing, Tuesday, Sept. 24, 2019. China's central bank governor says policy will stay "stable and healthy," suggesting Beijing has no plans to join the United States and Europe in cutting interest rates to stimulate economic growth. (AP Photo/Andy Wong)

BEIJING — China's central bank governor said Tuesday its monetary policy will stay "stable and healthy," suggesting Beijing has no plans to join the United States and Europe in cutting interest rates to stimulate economic growth amid a tariff war with Washington.

The People's Bank of China will avoid a "massive stimulus," Yi Gang said at a news conference.

Beijing is trying to shore up cooling economic growth amid a tariff war with Washington but is wary of reviving a rise in debt levels that are so high that rating agencies have cut China's credit rating.

"We believe that for our monetary policy we should stay committed to our own course and stick with an orientation that is stable and healthy," Yi said.

China's economic growth hit a three-decade low of 6.6% in 2018, adding to pressure on Beijing to expand stimulus measures. The ruling Communist Party is trying to shift to growth supported by domestic consumption instead of exports and investment but loosened lending controls after growth declined faster than planned.

Despite that, regulators have affirmed that reining in corporate and household debt is a priority.

"We must not adopt massive stimulus packages," Yi said. "We must make sure the leverage rate remains stable so that the total debt level remains sustainable."

You may also interested in

Asian stocks markets retreat after Wall Street...

Dec 23, 2016

Most Asian stock markets have declined in thin trading ahead of the Christmas holiday after Wall...

DEA opens shop in China to help fight synthetic...

Jan 6, 2017

The U.S. Drug Enforcement Administration plans to open a new office in southern China and, at...

China exports shrink as Trump trade tensions loom

Jan 13, 2017

China's exports fell back into contraction again last month, signaling renewed weakness for the...

China aircraft carrier capabilities tested on...

Jan 14, 2017

China's sole aircraft carrier has returned home following a three-week cruise during which its...

China state media call Trump's Taiwan strategy...

Jan 16, 2017

China's state-run media says President-elect Donald Trump "speaks like a rookie" and called his...

Subscribe To Our Newsletter