trending Market Intelligence /marketintelligence/en/news-insights/trending/T5qFMlThXnG9AkSRsrb4yA2 content esgSubNav
In This List

Report: China may further lower reserve ratios, central bank adviser says

Blog

Insight Weekly: Earnings learnings; Duke Energy hits back; PE activity surges

Blog

Banking Essentials Newsletter: July Edition - Part 3

Blog

Q&A: Data That Delivers - Automating the Credit Risk Workflow

Blog

Banking Essentials Newsletter: July Edition - Part 2


Report: China may further lower reserve ratios, central bank adviser says

China may consider further lowering its reserve requirement ratios, which are high compared to others in the world, but will not roll out massive monetary stimulus in 2019, Sheng Songcheng, an adviser to the People's Bank of China, said in an interview with the 21st Century Business Herald.

Sheng reportedly said he is not in favor of cutting interest rates, as doing so would put pressure on the Chinese yuan. If the yuan falls below 7.00 against the U.S. dollar, the cost to stabilize exchange rates will rise.

China's economic growth is likely to face downward pressure in 2019 before gradually stabilizing, the central bank adviser said.

Sheng, who called for reducing taxes and increasing investment in the country, expects China's budget deficit to be around 3% in 2019, versus the target of 2.6% for 2018.

The adviser's comments follow the Dec. 21 conclusion of the annual Central Economic Work Conference, where officials pledged to cut taxes and fees and implement a "prudent" monetary policy in 2019.