Central bankers and International Monetary Fund officials agree with Beijing: a slowdown in the world’s second-largest economy is considered healthy and there’s no need for further monetary easing.
People’s Bank of China Governor Zhou Xiaochuan reiterated the need for “prudent” monetary policy amid steady economic growth and “mild” inflation in an Oct. 11 report to the IMF in Washington. His statement comes before government reports of September inflation and credit this week; August data showed the weakest industrial-output expansion since the global financial crisis and a 40 percent drop in broadest measure of new credit from a year earlier.
The slowing momentum in the Chinese economy is being seen as positive rather than alarming. Moderating growth will make it more sustainable, which will benefit both China and Asia, Malaysia’s Central Bank Governor Zeti Akhtar Aziz said in an interview with Bloomberg News on the weekend. The balance between expansion and structural reforms that China is seeking is right so far, Markus Rodlauer, deputy director of IMF’s Asia Pacific Department, said at an Oct. 10 briefing.
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