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China Daily Website  

China to stick with existing policy

Updated: 2014-10-23 11:17

China is set to maintain a monetary easing policy for the foreseeable future, the China Securities Journal reported.

To handle potential risks of an economic downturn, top leaders have indicated they will implement moderate monetary policies, which may not change until the end of the year, said Zhao Weihua, an analyst at China Bond Insurance Co Ltd.

Data shows that newly-added funds outstanding for foreign exchange reserves in financial institutions increased 1.14 billion yuan ($190 million) in September. In the past five months, funds were minus 8.6 billion yuan on average every month.

Analysts also said that if current fine-tuned and directional monetary policies cannot achieve satisfactory results, the government would be more likely to lower interest rates to stimulate the economy.

Wang Tao, an economist at UBS Securities Co Ltd, said lowering interest rates is necessary, and the government may reduce the benchmark loan rate this year or at the beginning of 2015.

However, China Bond’s Zhao said a widespread interest rate cut is not expected this year and the structural easing policy will still play a leading role.

China to stick with existing policy

China to stick with existing policy

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