China's current economic growth is stable and monetary policy remains stable and neutral, China's central bank governor Yi Gang said on Sunday at the G30 International Banking Seminar 2018.
Governor of the People's Bank of China (PBC), China's central bank. (File Photo: VCG)
At the same time, the downside risks to the economy from trade frictions are enormous.
Yi said he expects China to achieve its 6.5 percent growth target this year, or even slightly higher. The current CPI is 2 percent and the PPI is 4 percent. It is expected that the annual CPI will be slightly higher than 2 percent and the PPI will be between 3-4 percent.
In the first half of the year, China’s current accounts suffered a deficit. It may have a small surplus throughout the year, which is expected to be less than 1 percent of GDP.
To solve the structural problems in China’s economy, China will speed up domestic reform and opening-up, strengthen intellectual property protection, and consider treating State-owned enterprises with “competitive neutrality”. China will vigorously promote the opening-up of the service sector, including the financial industry, Yi added.