China will increase the flexibility of monetary policy

Moscow. December 21. The Chinese authorities intend to support the country’s economy, increasing the flexibility of monetary policy and applying the “more powerful” preventive measures in the field of taxation, said in a statement on the results of annual government conference Central Economic Work Conference.

In a statement published by the Agency “Xinhua”, it is noted that the country would gradually increase the budget deficit. In addition, the authorities promised to help rural residents who plan to purchase housing in the city.

These incentives are designed to keep the Chinese economy from an excessive slowdown. Experts predict that in 2015, China’s GDP will grow by 7%, what will be the minimum rate in a quarter century.

“The increase in deficiency is best, says Societe Generale analyst Wei Yao. – Flexibility in monetary policy, generally means its further easing”.

Over the past year, the people’s Bank of China (PBC, the Central Bank of the country) has cut its key interest rates six times. At the moment the interest rate on loans in the country is at the level of 4.35%, on deposits – 1.5%.

Conference Central Economic Work Conference is held once a year the Central Committee of the Communist party of China and the State Council of the PRC. Chinese it leaders define the main directions of economic policy for the next year.