Friday, March 11, 2016

ecns [expanded by feedex.net]: China can meet growth targets without stimulus: PBOC governor

ecns [expanded by feedex.net]

ecns

China can meet growth targets without stimulus: PBOC governor
http://www.ecns.cn/business/2016/03-12/202622.shtml
Mar 12th 2016, 10:53





The growth targets China has set for this year and the 13th Five-Year Plan period (2016-2020) can be realized through improving domestic demand, consumption and innovation, without big stimulus, central bank governor said Saturday.
"China will stick to the prudent monetary policy," said Zhou Xiaochuan, governor of the People's Bank of China (PBOC), at a press conference on the sidelines of the national legislature's annual session.
China's growth target for 2016 is in the range of 6.5 percent and 7 percent, while that for years leading to 2020 is above 6.5 percent.
These are "anticipatory targets," which are made on the basis of China's growth trajectory in the past and its growth potential in the future, Zhou said.
China seeks growth by relying more on domestic demand, as the old growth driver of exports loses steam and is not able to contribute to the economic growth the way it used to, Zhou said, adding that China has no intention of manipulating its currency rate to stimulate exports.
With the improvement in domestic demand, consumption and innovation, the growth targets are attainable without resorting to stimulus.
Yi Gang, PBOC vice governor, added that China's reform and opening-up drive will unleash more growth momentum.
In the event of global and domestic financial turbulence, however, Zhou said that China's monetary policy will be flexible.
Read more:
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The Chinese currency renminbi, or the yuan, has started to return to its normal and reasonable level after volatility, and the trend will continue, central bank governor said. >>
No worry about asset backed securitization in China: central bank
The market of asset-backed securitization (ABS) is quite small in China and risks can be prevented through better oversight and transparency, central bank governor said. >>
No need to stimulate exports by devaluating RMB: central bank governor
Despite sluggish foreign trade, there is no need for China to resort to special measures to improve competitiveness of the country's exports, central bank governor said. >>
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