Too early expecting China to tighten monetary policy: report

0 Comment(s)Print E-mail Xinhua, May 3, 2019
Adjust font size:

It is too early to expect an imminent policy shift to tightening from China's central bank amid the weaker readings of manufacturing purchase managers index (PMI) in April, according to a report by Bank of America Merrill Lynch issued on Thursday.

Chinese PMI in manufacturing sector declined to 50.1 percent in April from 50.5 percent in the previous month, according to the latest data issued by China's National Bureau of Statistics (NBS) on Tuesday.

However, Bank of America Merrill Lynch said, "We maintain that the worst in the cycle is behind us and expect continued growth improvement."

Chinese manufacturing PMI rebounded to expansionary 50.5 percent in March from contractionary readings from December 2018 to February 2019, according to the NBS.

China's consumer price index (CPI) would see year-on-year growth of 2.4 percent in 2019 and could temporally top 3 percent at the end of 2019 due to substantial rise of pork prices, the international investment bank said.

The report also noted that inflation will unlikely become an imminent constraint for monetary policy or force the People's Bank of China (PBOC), the central bank, to tighten.

China maintains a prudent monetary policy and keeps it neither tight nor loose at the current stage, Liu Guoqiang, vice governor of PBOC, said recently.

Liu stressed that China "has no intent to tighten or relax monetary policy". 

Follow China.org.cn on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter