Central Banks
China Central Bank Signals Stable Policy as Economy Rebounds
- Governor Yi Gang says real rates are at appropriate level
- Analysts on watch for shift in stance as growth accelerates
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China’s central bank Governor Yi Gang signaled monetary policy will largely be stable this year, saying interest rates in the economy are appropriate, inflation will remain under control and the currency’s volatility wasn’t a concern.
In a rare media briefing, Yi said in Beijing on Friday that real interest rates are at a relatively appropriate level. He hinted at supporting the economy in other ways, saying cuts to the reserve requirement ratio remain an effective way for the People’s Bank of China to provide long-term liquidity. Price stability is the basis of a stable currency, he added.