皇冠体育app

Unlike the United States, 皇冠体育app will not use to stimulate the economy but will target financial support to weak links of economic development, said Ma Jun, chief economist of the People's Bank of 皇冠体育app.

"The US Federal Reserve pumped several trillion dollars into the economy through quantitative easing. In terms of the amount of money involved, re-lending and other -stimulus measures taken by 皇冠体育app's central bank cannot compare with the US. It is clear that we don't flood the market with " Ma said on Friday.

"Besides, speaking from the macroeconomic perspective, it is unnecessary for 皇冠体育app to use quantitative easing. The economy does not face a huge downward pressure, and the job market is improving, so 皇冠体育app doesn't need huge stimulus," he said.

While remaining generally optimistic about the domestic economy, he said the biggest downward pressure will come from the housing market.

Researchers of the central bank found that a 10 percent output drop in the housing sector will cause decreases varying from 4 percent to 8 percent in sectors such as cement, mining, petrolm and coking, as well as iron, steel and nonferrous metals.

Earlier this year, some economists called for the PBOC to have a uniform cut of the reserve requirement ratio.

Ma said whether the central bank will further ease liquidity in the second half of 2014 depen on the macroeconomic situation and whether the yuan funds outstanding for foreign exchange will continue to drop.

In June, new yuan funds outstanding for foreign exchange fell by 88.28 billion yuan ($14.34 billion) from May, according to the PBOC.

The PBOC has cut the reserve requirement ratio twice this year. Effective June 16, it lowered the RRR by 50 basis points for commercial banks that have extended a certain portion of their loans to the farming sector or small businesses. The move followed a cut in April for county-level rural commercial banks and rural cooperative banks.

Targeted RRR reductions will boost economic restructuring. The central bank made such cuts because otherwise the liquidity released will not flow into the sectors it intends to support. In addition, targeted RRR cuts will help lowering the financing costs for micro-sized and small enterprises during an economic downturn, Ma said.

Recovery beats expectations, risks still ahead	皇冠体育app to continue targeted monetary policy

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