Weak fig­ures fuel pol­icy eas­ing bets

China Daily (Canada) - - FRONT PAGE -

“Atar­geted, mod­er­ate stim­u­lus pack­age may be seen in fu­ture to curb the eco­nomic slow­down,” he said.

Pre­mier Li Ke­qiang has low­ered 2015’s GDP tar­get to around 7 per­cent, down from last year’s 7.5 per­cent. Last year, an­nual eco­nomic growth was 7.4 per­cent, or a 24-year low.

Xu Shaoshi, min­is­ter of the Na­tional Devel­op­ment and Re­form Com­mis­sion, said at a news con­fer­ence at the an­nual Na­tional Peo­ple’s Congress ses­sion that the econ­omy had ac­tu­ally re­bounded slightly in Fe­bru­ary af­ter the deep­ened down­turn in Jan­uary.

“Some lead­ing in­dexes, such as the Pur­chas­ing Man­agers In­dex, have shown slight im­prove­ments, in­di­cat­ing sta­ble mar­ket ex­pec­ta­tions and re­bounded con­fi­dence, which will have a pos­i­tive ef­fect on fu­ture eco­nomic growth,” he said.

In terms of month-on­month growth, industrial out­put ac­cel­er­ated by 0.45 per­cent in Fe­bru­ary from Jan­uary, and fixed-as­set in­vest­ment im­proved by 1.03 per­cent, ac­cord­ing to the NBS.

CPI in­fla­tion picked up in Fe­bru­ary to 1.4 per­cent yearon-year, mainly be­cause of a rise in food prices. The PPI decline deep­ened from 4.3 per­cent in Jan­uary to 4.8 per­cent in Fe­bru­ary, the NBS showed.

The man­u­fac­tur­ing PMI climbed to 49.9 in Fe­bru­ary from 49.8 in Jan­uary, but still showed con­trac­tion in the sec­tor.

he cen­tral bank has cut bench­mark in­ter­est rates twice since Novem­ber. It also re­duced the amount of cash that banks must hold as re­serves in early Fe­bru­ary, in or­der to in­crease mar­ket liq­uid­ityand­off­set the in­crease of cap­i­tal out­flows.

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