China’s Central Banker Says Beijing Won’t Stimulate Slowing Economy

Chinese central bank governor Zhou Xiaochuan says that Beijing won’t initiate large-scale monetary stimulus now, according to remarks he made at the Tsinghua PBCSF Global Finance Forum held in Beijing on May 10, according to official Chinese media reports.

"Short-term economic data doesn’t give us enough (to analyze the situation), but we are paying great attention to them," Zhou Xiaochuan was quoted as saying. "If we found there are cyclical changes, we will make adjustments, but mostly just fine tuning our existing policies."

The People’s Bank of China governor said that right now, the signal from China’s State Council is clear, that it won’t implement large-scale stimulus policies to accelerate the country’s slowing economic growth.

Many economists, including from Nomura and ANZ, have predicted that China will lower its official bank requirement ratio soon to spur growth. The calls become particularly strong after April inflation numbers stayed subdued.