China to take cues on easing from 4Q data, US and Japanese monetary policy
The People's Bank of China will wait until fourth-quarter economic data is out and monitor American and Japanese monetary policy before considering any more interest rate cuts or easing, an adviser to the central bank said.
The People's Bank of China will wait until fourth-quarter economic data is out and monitor American and Japanese monetary policy before considering any more interest rate cuts or easing, an adviser to the central bank said.
The PBOC surprised the markets by cutting rates last Friday for the first time in more than two years to help stabilise the world's second-largest economy. It was then reported that the mainland was prepared to ease policy again.
"Regarding the next step, whether to cut rates again or take similar action, we still need to look at the fourth quarter's macroeconomic index," said Chen Yulu, who sits on the PBOC's monetary policy committee. He was speaking on the sidelines of an economy and finance forum in Beijing.
"It is also important to make decisions taking into account Japanese and US monetary policy," Chen said.
He added that he did not believe Friday's benchmark lending rate cuts represented a change in monetary policy, echoing the central bank line.
Mainland economic growth slowed to 7.3 per cent in the third quarter and policymakers feared it was on the verge of dipping below 7 per cent - a rate not seen since the global financial crisis. Producer prices, charged at the factory gate, have been falling for almost three years, piling pressure on manufacturers, and consumer inflation is also weak.
