The Chinese central bank said it is in no rush to join its global peers in easing monetary policies, saying it plans to stick to a "normal monetary policy" for as long as possible, Xinhua reported.
"[W]e are not in a hurry to have some relatively significant interest rate cuts and quantitative easing policies, as some other central banks have done," People's Bank of China Governor Yi Gang said at a press conference Sept. 24.
Yi noted that in case of an economic downturn, major economies would have consumed all available policy tools, though China would still have "relatively more space" to act.
Yi said China's monetary policy is driven by domestic economic conditions and that its monetary stance should remain "firm and steady." He added that the Chinese economy remains in a "reasonable range."
His remarks come as central banks around the world lowered borrowing costs amid fears of global growth slowdown.
The European Central Bank on Sept. 12 lowered its deposit facility rate and announced that it will restart its bond purchases. Less than a week later, the U.S. Federal Reserve cut its benchmark interest rate in a widely expected move.
In Asia, the PBoC last week cut its one-year loan prime rate by 5 basis points to 4.20%, marking the second reduction in the new reference point for new loans issued by domestic banks.
The Bank of Japan stressed that it will not hesitate to ease monetary policy further.
