China’s economy is growing at an acceptable pace, China’s central bank Deputy Governor Yi Gang said, adding to signals policy makers will avoid broad stimulus to counter a slowdown.
“Economic growth is still within a reasonable range,” Yi said in an interview with Bloomberg News in Washington, responding to a question about whether he’s concerned that recent weakness in economic data points to a further slowdown in the world’s second-largest economy.
Indicators suggesting China’s economy expanded in the first quarter at the slowest pace since 2009 have spurred speculation the People’s Bank of China will cut banks’ reserve requirements for the first time in almost two years. PBOC Governor Zhou Xiaochuan said yesterday officials “don’t have to roll out significant policies” when growth is within normal ranges.
Commenting on the yuan, Yi said while the volatility of the exchange rate has increased lately, the fluctuation is still smaller compared with other currencies. It’s a “good thing” the exchange rate is allowed to move in a wider range, Yi said during International Monetary Fund meetings.
Last month, the PBOC doubled to 2 percent the range in which the yuan can trade on either side of a daily reference rate.