{"id":24982,"date":"2015-02-28T18:18:04","date_gmt":"2015-02-28T17:18:04","guid":{"rendered":"http:\/\/www.w-t-w.org\/en\/?p=24982"},"modified":"2015-03-01T17:43:59","modified_gmt":"2015-03-01T16:43:59","slug":"24982","status":"publish","type":"post","link":"https:\/\/www.w-t-w.org\/en\/24982\/","title":{"rendered":"China Joins the World with Growth Policies"},"content":{"rendered":"

China\u2019s Premier called for more active fiscal policy and a central bank publication said additional monetary easing is needed, signaling more support is on the way for the world\u2019s second-biggest economy.<\/p>\n

Li Keqiang\u2019s call to aid growth accompanied an announcement of tax breaks for small business, according to a government statement summarizing a cabinet meeting yesterday. Meanwhile, the central bank should cut bank\u2019s required reserve ratios further to deal with deflation risks, said an article in the People\u2019s Bank of China\u2019s newspaper published today.<\/p>\n

\u201cTo fend off possible deflation, the central bank should continue to adjust tools, from required reserve ratios and benchmark interest rates, at the right time,\u201d the Financial News article said.<\/p>\n

Further stimulus would see China joining Europe and Japan in accelerating pro-growth policies.\u00a0 The government said it will give more small businesses tax breaks and accelerate water management projects.<\/div>\n

\u201cTo cope with the current downward pressure on growth and to keep economic operation within a reasonable range, China\u2019s active fiscal policy must become more effective and more efficient,\u201d according to the statement.<\/p>\n

The policies suggest China\u2019s budget deficit will widen this year to 2.8 percent of gross domestic product, from 1.8 percent in 2014, Nomura Holdings Inc. economists led by Yang Zhao wrote in a note today.<\/p>\n

\u201cThese measures should help mitigate the pace of the economic slowdown,\u201d Zhao wrote. \u201cHowever, such measures tend only to provide a cushion for the economy but cannot drive a turnaround of the growth downtrend.\u201d<\/p>\n

China this month cut the amount of cash banks must set aside as reserves by 50 basis points, its first across-the-board reduction since May 2012. It will inject as much as 600 billion yuan ($96 billion) into the banking system, Australia & New Zealand Banking Group Ltd. economists estimated.<\/p>\n

\"China's<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

China\u2019s Premier called for more active fiscal policy and a central bank publication said additional monetary easing is needed, signaling more support is on the way for the world\u2019s second-biggest economy. Li Keqiang\u2019s call to aid growth accompanied an announcement … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[13],"tags":[],"class_list":["post-24982","post","type-post","status-publish","format-standard","hentry","category-finance"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t