China’s central bank will wait until fourth-quarter economic data is out and monitor U.S. and Japanese monetary policy before considering any more rate cuts or easing, a central bank adviser said on Tuesday.
The People’s Bank of China surprised the markets by cutting rates last Friday for the first time in more than two years to help stabilize the world’s second-largest economy. Reuters then reported that China was prepared to ease policy again.
“Regarding the next step, whether to cut rates again or take similar action, we still need to look at the fourth quarter’s macroeconomic index,” said Chen Yulu, who sits on the central bank’s monetary policy committee. He was speaking on the sidelines of an economy and finance forum in Beijing.
“It is also important to make decisions taking into account Japanese and U.S. monetary policy,” Chen said.
He added that he didn’t believe that Friday’s benchmark lending rate cuts represented a change in monetary policy, echoing the central bank line.
Prior to Friday’s moves, Beijing and the central bank had persisted with modest stimulus measures.
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