During his speech at a press conference on Monday morning, People’s Bank of China Governor Pan Gongsheng stated that the current level of interest rates still leaves room for monetary policy adjustment and interest rate cuts, compared to central banks in other major economies.
In addition to this, Pan's statements also included the following remarks:
The People's Bank of China should intensify adjustments in monetary policy. The average reserve requirement ratio for deposits at local banks in China remains at around 6.6% only. Compared to central banks in other major economies, this level still leaves room for many adjustments. Pan Gongsheng's statements today come after the Chinese central government announced last week that it is preparing to take more stimulus measures to boost domestic demand and help accelerate the recovery of economic activity.
In the week prior, the Chinese government pledged to implement record stimulus measures to support economic growth as the year begins, and the Ministry of Finance announced a planned record increase in the budget deficit for the next year, reaching 3%, up from 2% this year.
