China to keep economic stimulus in 2016: Bloomberg
Updated: 2015-12-19 16:12
(Xinhua)
|
|||||||||
BEIJING - China is expected to keep its stimulus measures including interest rate cuts in 2016 to underpin economic growth, Bloomberg economists has said.
"The central bank will likely make two 25 bp cuts in the loan rate and multiple cuts in the reserve requirement ratio in the first half," said the economists in a report called "China's Economy in 2016" reached Xinhua reporters late on Friday.
However, "space for rate cut is limited as the deposit rate approaches zero," according to the Bloomberg report.
Benchmark interest rates for one-year lending and deposits stand at 4.35 percent and 1.5 percent respectively after a 0.25 percentage point cut in this October.
To combat a economic slowdown, China's central bank has cut benchmark interest rates five times since last November and lowered banks' reserve requirement ratio three times since February.
The Ministry of Finance has accelerated public spending and rolled out a 3.2 trillion yuan $494 billion debt swap for in-the-red local governments, the Bloomberg report said.
"Most recently the yuan has fallen 2.4 percent to 6.4726 in mid-December from 6.3174 at the end of October," said the report.
To add liquidity, the Bloomberg report forecast that China's reserve requirement ratio will come down from the current 17.5 percent level next year.
The Bloomberg economists expected more pro-growth exchange rate and fiscal policy adjustments next year, adding that China has "enough policy space to keep GDP growth "close to 7 percent, but not for much longer."
- 10 execs suspected of faking pollution data
- Top 10 social media events of 2015
- Life sentences for east China child traffickers
- Shenzhen leaps to top of efficiency list in 2 yrs
- Pandas prefer choosing their own sex partners, researchers find
- Tycoons exchange views on building a cyberspace community of shared future
- Iraq holds its first beauty contest in 40 years
- Libyan factions sign UN deal to form unity government
- World's refugees and displaced exceed record 60 million
- No specific, credible terror threats against US: Obama
- UN Security Council adopts resolution to cut off Islamic State funding
- California shooters' ex-neighbor charged with supporting terrorists
- Iraq holds its first beauty contest in 40 years
- Highlights at the Light of the Internet Expo
- Finger Icons: Guess who's who
- Older mother who lost only child delivers another baby
- Top 10 most attractive FDI destinations in the world
- Canadian college offers flying classes to legless girl
- Fashion buyer scours the world for trendy items
- Tycoons exchange views on building a cyberspace community of shared future
Most Viewed
Editor's Picks
8 highlights about V-day Parade |
Glimpses of Tibet: Plateaus, people and faith |
Chinese entrepreneurs remain optimistic despite economic downfall |
50th anniversary of Tibet autonomous region |
Tianjin explosions: Deaths, destruction and bravery |
Cinemas enjoy strong first half |
Today's Top News
Shooting rampage at US social services agency leaves 14 dead
Chinese bargain hunters are changing the retail game
Chinese president arrives in Turkey for G20 summit
Islamic State claims responsibility for Paris attacks
Obama, Netanyahu at White House seek to mend US-Israel ties
China, not Canada, is top US trade partner
Tu first Chinese to win Nobel Prize in Medicine
Huntsman says Sino-US relationship needs common goals
US Weekly
Geared to go |
The place to be |