Entornointeligente.com / BEIJING (Reuters) – China can use reserve requirements and interest rates to support economic growth, Premier Li Keqiang said on Friday, promising efforts to prevent a sharper deceleration as the world’s second-biggest economy expands at its slowest pace in almost three decades.
Li’s comments suggest Beijing will roll out more stimulus measures to ease the strain on businesses and consumers. China has already flagged billions of dollars in planned tax cuts and infrastructure spending, as economic momentum is expected to cool further due to softer domestic demand and a trade war with the United States.
The central bank has cut banks’ reserve requirement ratios (RRR) five times in the past year, with a two-stage RRR cut in January releasing a total of 1.5 trillion yuan ($223.23 billion) into the financial system.
Further cuts in the RRR had been widely expected this year, after fresh data pointed to persistently soft demand in the Asian economic giant, raising fears of a sharper slowdown.
Tax and fee cuts announced by the government will take effect from April 1, while social security fees will be reduced from May 1, Li told reporters at a news conference at the conclusion of the annual parliament meeting.
LINK ORIGINAL: Reuters