China not rushing for interest rate cuts, quantitative easing: central bank chief
Global Times


Governor of the People's Bank of China Yi Gang attends a press conference on the financial reform and development for the second session of the 13th National People's Congress (NPC) in Beijing, capital of China, March 10, 2019. (Photo: Xinhua)

China is not in a rush to adopt large-scale quantitative easing or make interest rate cuts, Yi Gang, governor of the People's Bank of China (PBC), the country's central bank, said on Tuesday.

Yi commented during a press conference on the celebration of the 70th anniversary of the founding of the People's Republic of China, in response to a question about whether the PBC will again cut banks' reserve requirement ratio (RRR) or interest rates to confront economic downward pressure.

Yi said "unlike central banks in other countries, we are not in a rush to adopt large quantitative easing or interest rate cuts," noting that it's important to maintain monetary-policy settings and pursue normal policy arrangements as long as possible.

Yi also said China will maintain its prudent monetary policy and a stable leverage ratio and won't flood the economy with stimulus spending.

Over the past 40 years, China has continuously improved its monetary policy structure, shifting from direct to indirect policy instruments by abolishing lending limits and establishing social and overall financing indicators as a key reference for monetary policy.

The PBC has already taken steps to meet economic performance requirements through open market operations, and monetary policy tools like the RRR and the rediscount rate. The central bank has also been deepening interest rate reform while establishing monetary policy and macro prudent policy as two major regulatory structures.

China has also largely established an opening-up system valuing fair competition, and the market has been opening up in terms of financial sectors.