PBOC Governor: "This Year's Economic Growth Rate at Potential Growth Level... Will Maintain Stimulus Policy"

Yi Gang, Governor of the People's Bank of China
Photo by Reuters-Yonhap News

[Asia Economy Reporter Park Byung-hee] Yi Gang, Governor of the People's Bank of China, the central bank of China, stated in an interview ahead of the Group of Twenty (G20) Finance Ministers and Central Bank Governors meeting that the People's Bank of China will maintain an accommodative monetary policy stance this year.

According to Bloomberg on the 16th, Governor Yi said via video, "China's economic growth rate this year will be at the level of potential growth rate." This is interpreted as meaning that, with growth expected to slow compared to last year, the monetary policy will focus on stimulus.

In a report from March last year, the People's Bank of China projected the five-year potential growth rate through 2025 to be between 5% and 5.7%. Economists surveyed by Bloomberg also forecast China's economic growth rate this year at 5.2%. Last year, China's economic growth rate recorded 8.1%, benefiting from the base effect due to the COVID-19 pandemic in 2020.

Governor Yi said that given the various anticipated difficulties, the central bank must operate monetary policy with a focus on economic stimulus.

He stated, "We will maintain a flexible and appropriate monetary policy" and "strengthen support for the important and weak parts of China's economy." He also added, "There will be uncertain factors both domestically and internationally that pose challenges to China's economy, and policies that respond more to these will be required."

The G20 Finance Ministers and Central Bank Governors meeting, which Governor Yi will attend, will be held on the 17th and 18th in Jakarta, Indonesia.

This content was produced with the assistance of AI translation services.