Bloomberg: China Central Bank Won’t Exit Prematurely From Stimulus, Yi Says
Tue January, 2021, Age: 3 years
The governor of China’s central bank, Yi Gang, reaffirmed on a panel discussion held by the World Economic Forum that China would not prematurely cease its supportive monetary policy. “Looking forward, I think our monetary policy will continue. We will keep a delicate balance between supporting the economic recovery, at the same time, preventing risk,” Yi said, referring to the risk of inflation and asset bubbles brought on by a supportive monetary policy. The announcement came amidst the backdrop of news that China withdrew $12 billion cash from its central bank and a warning delivered by an adviser to the People’s Bank that asset bubbles were in the offing if China’s current monetary policy wasn’t constrained. Yi reiterated that China’s growth outlook looked strong in the coming year and that “Our saving rate is starting to decline a little bit every year. That is a good indication that more growth is coming from consumption”.