In 2016, the Chinese government should continue its course on monetary policy easing


BEIJING, December 20. /Corr. Alexey Selishev/. Next year, the growth rate of the Chinese economy will slow down. To stabilize the growth rate of GDP of the country experts of the State Committee for development and reform Commission of China recommended to the government to continue the course on monetary policy easing, described in the report of the Committee.

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To stabilize monetary policy, the authors give three recommendations. “First, to continue to reduce interest rates and reserve requirements, will be sufficient to maintain an acceptable level of market liquidity in conditions of acceleration of the outflow of capital abroad. Taking into account the situation on the money market are also encouraged to continue the decline in the exchange rate of Renminbi to other currencies for the purpose of partial stimulation of export”, – stated in the document, excerpts of which leads in the Sunday edition of “the kingkey daily”.

The article notes that the acceleration of capital outflows from the Chinese market may occur in connection with an increase in the Federal reserve system (FRS) the USA of discount rate. In December 2008, the us regulator has lowered the rate almost to zero and kept it in the range of 0-0. 25% for almost 7 years. On 16 December the fed decided to raise the benchmark interest rate by 25 b.p. – to 0.25-0.5% 0-0,25% per annum.

In the Committee’s report also identifies the importance of diversification stock market in the country. Secondly, the document says, “to continue to stabilise the stock market, continuing the optimization of the system of financing market”. Thirdly, to promote the diversification of capital market, development of new tools and strategically important institutions.

In China is the slowdown in the economy. In 2010 the GDP growth rates were at the level of 10.4%, in 2011 – 9.2% and in 2012 of 7.8%. By the end of 2013, this figure had slowed to 7.7% and in 2014 to 7.4%. Official government GDP growth forecast for 2015 to 7%.