Zhou Xiaochuan, governor of the People’s Bank of China, answers questions at a press conference on the financial reform and development on the sidelines of the fourth session of the 12th National People’s Congress in Beijing, capital of China, March 12, 2016. [Photo/Xinhua]
The growth targets China has set for this year and the 13th Five-Year Plan period (2016-2020) can be realized through improving domestic demand, consumption and innovation, without big stimulus, central bank governor said on March 12.
“China will stick to the prudent monetary policy,” said Zhou Xiaochuan, governor of the People’s Bank of China (PBOC), at a press conference on the sidelines of the national legislature’s annual session.
China’s growth target for 2016 is in the range of 6.5 percent and 7 percent, while that for years leading to 2020 is above 6.5 percent.
These are “anticipatory targets,” which are made on the basis of China’s growth trajectory in the past and its growth potential in the future, Zhou said.
China seeks growth by relying more on domestic demand, as the old growth driver of exports loses steam and is not able to contribute to the economic growth the way it used to, Zhou said, adding that China has no intention of manipulating its currency rate to stimulate exports.
With the improvement in domestic demand, consumption and innovation, the growth targets are attainable without resorting to stimulus.
Yi Gang, PBOC vice-governor, added that China’s reform and opening-up drive will unleash more growth momentum.
In the event of global and domestic financial turbulence, however, Zhou said that China’s monetary policy will be flexible.