China has a lot of room to maneuver its policy and boost its economy having avoided using strong, short-term stimulus in recent years, Premier Li Keqiang said on Sunday, in a rare suggestion that authorities can do much more to stoke growth.
Li, addressing a news conference at the end of China’s annual session of parliament, tried to allay fears about a stumbling economy by vowing to keep it growing at a reasonable speed, even as he acknowledged the job is not easy.
He assured his audience that policymakers would prop up the economy if growth was at risk of breaching a “lower limit”, or hurt employment and income gains. “In recent years, we have not taken any strong, short-term stimulus policies, so we can say our room for policy maneuver is relatively big, the tools in our toolbox comparatively many,” Li said.
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