Mainland leaders have vowed to continue fiscal stimulus spending and appropriately loose monetary policies this year, and say the economy has not yet fully recovered from the impact of the global financial crisis, state media reported yesterday.
President Hu Jintao chaired a meeting of the decision-making Politburo yesterday to review the annual government work report to be delivered at the annual plenum of the National People's Congress, which begins on March 5.
The announcement, aimed at setting the tone for this year's economic development, is expected to ease concerns Beijing will announce further tightening.
It follows the US central bank's decision last week to raise its discount lending rate, seen as its first major move to unwind stimulus measures, which sent jitters through international stock markets.
'[China] will continue to maintain the continuity and stability [of the policies],' Xinhua reported, citing the Politburo statement.
However, the statement also stressed the need to manage the tempo, strength and focus of policy implementation and strike a balance between supporting growth and managing inflationary expectations.
It signals that Beijing will not take major steps to unwind the stimulus package soon, although it has tightened bank lending, raising the reserve requirement ratio for major lenders twice this year.
