Economists see more pro-growth support
▶ Discussions come as nation set to outline top priorities for coming year
Some prominent Chinese economists have predicted that China will further step monetary policy support for the economy, after a series of recent government support measures to shore up the world’s secondlargest economy to keep growth in a reasonable range.
The discussion of easier monetary policy comes as the country is set to hold the Central Economic Work Conference, a key meeting that outlines top policy priorities for the next year, and as it implements 20 optimized measures for combating COVID-19 and bolstering economic development.
China has more leeway in anchoring its monetary policy in 2023 as the country will likely trend toward “easing” on the basis of a prudent stance, said Lian Ping, president of the China Chief Economist Forum.
The economy could face persistent downward pressure in 2023, and a proactive fiscal policy necessitates a supportive monetary policy, Lian said.
Yu Yongding, a member of the Chinese Academy of Social Sciences, speaking at a separate forum, stressed that at the moment China must prioritize ramping up growth rather than curbing inflation, per media report on Sunday.
Yu said that placing an emphasis on curbing financial risks does not contradict efforts to ramp up economic growth.
Experts interviewed by the Global Times on Monday said that ensuring stable economic growth would be a main theme in the coming months and even next year, as the measures would also be aligned with the goal of seeking high-quality growth stressed during the recently concluded 20th National Congress of the Communist Party of China.
Experts noted that the abating of US interest rate hikes will also provide an external environment for China to keep its monetary policy loose.
There could be six more cuts in reserve requirements, at 50 bps each time, down the road to provide more liquidity support to the economy, Liao Qun, chief economist with Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times.
Predictions for further progrowth policy measures over the weekend came after the decision by the People’s Bank of China (PBC) on a universal 25 basis points (bps) reduction in financial institutions’ reserve requirements. The move could inject about 500 billion yuan ($69.72 billion) of long-term funds into the economy.