Bloomberg reports that according to Huang Yiping, a former member of the People’s Bank of China’s monetary policy committee, China’s fiscal policy will provide the main support to economic growth next year while significant monetary easing is unlikely.
“The economy overall really is still okay and we will see average growth this year at around 8%,” Huang said. “So the need for aggressive easing is quite limited.”
“Monetary policy will probably remain flexible, and actions probably will be structural,” he said, adding that this could mean targeted easing and lending to small businesses. “The main job for supporting growth, I think, will be with the fiscal policy next year.”
Huang said growth is likely to see a further slowdown in the coming months before it turns around. While long-term goals such as deleveraging the property sector and reducing carbon emissions have inflicted short-term pain on the economy, Huang said he isn’t “too worried” about growth as authorities are now fine-tuning policies in these areas.