China vows to bet­ter co­or­di­nate fis­cal, mon­e­tary poli­cies

The Pak Banker - - FRONT PAGE -

China will bet­ter co­or­di­nate its fis­cal and mon­e­tary poli­cies to help counter a slow­down in the econ­omy, Liu Kun, a vice fi­nance min­is­ter, said in re­marks pub­lished on Thurs­day.

The govern­ment will keep eco­nomic growth within a rea­son­able range, ramp­ing up fis­cal poli­cies while us­ing pru­dent mon­e­tary poli­cies flex­i­bly and ap­pro­pri­ately, Liu said in a speech pub­lished on the min­istry's web­site.

A slew of se­nior govern­ment of­fi­cials col­lec­tively as­sured jit­tery in­vestors the govern­ment will act to sta­bi­lize the econ­omy af­ter the week­long Lu­nar New Year hol­i­day.

A rout in Chi­nese stocks last sum­mer and the un­ex­pected de­val­u­a­tion of the yuan CNY=CFXS in Au­gust have rat­tled global mar­kets, rais­ing con­cerns about the health of the world's sec­ond­largest econ­omy and Bei­jing's abil­ity to steer it si­mul­ta­ne­ously through both a pro­tracted slow­down and rad­i­cal re­struc­tur­ing. Liu said that rais­ing the fis­cal deficit ra­tio and cut­ting taxes will be­come an ap­par­ent choice for stim­u­lat­ing growth. Fis­cal spend­ing is ex­pected to be at a rel­a­tively high level this year, he said, adding that Bei­jing will set a rea­son­able quota for the lo­cal govern­ment debt swap pro­gram.

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