China central bank chief says plenty of room for adjustment in interest rates, RRR

People's Bank of China (PBOC) Governor Yi Gang speaks at a panel at the Boao Forum for Asia in Qionghai
FILE PHOTO: People’s Bank of China (PBOC) Governor Yi Gang speaks at a panel at the Boao Forum for Asia in Qionghai, Hainan province, China April 11, 2018. REUTERS/Stringer

October 14, 2018

NUSA DUA, Indonesia (Reuters) – China central bank governor Yi Gang said on Sunday he still sees plenty of room for adjustment in interest rates and the reserve requirement ratio (RRR), as downside risks from trade tensions with the United States remain significant.

China faces “tremendous uncertainties” ahead due to the impact of tariffs and trade frictions, and the country is seeking “constructive solution” to the current trade tensions, Yi said on the sidelines of the annual International Monetary Fund and World Bank meetings in the Indonesian island of Bali.

But the country’s economic growth would still comfortably reach its full-year target of around 6.5 pct with the possibility of overshooting, Yi said, adding that he is comfortable with inflation levels.

China’s monetary stance is still basically neutral, with neither easing nor tightening bias, he said.

(Reporting by Yawen Chen; Editing by Muralikumar Anantharaman)

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