A senior official from the People’s Bank of China (PBOC) has ruled out any major loosening of monetary policy in 2019 to shore up easing economic growth amidst ongoing trade tensions with the United States.
Sun Guofeng, a senior official from PBOC’s monetary policy department, said that financial risks are “controllable” that Beijing expects the growth of the Chinese economy to remain within a “reasonable range” according to a report from the South China Morning Post.
For this reason Sun says there is no need for major adjustments to Chinese monetary policy, which will remain “prudent” and free of any “deluge of stimulus” in future.
Sun instead highlighted the increased use of targeted adjustments and macro controls when applying monetary policy in future.
“Because the situation is comparatively complex, [we] need to be more forward-looking and flexible to counter it,” said Sun at a press briefing.
PBOC recently launched a new policy tool in the form of the targeted medium-term lending facility just after the US Federal Reserve unveiled its fourth rate hike for 2018, while domestic analysts expect policy to become more targeted next year, with room for several further reserve cuts.