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Easing to support growth trajectory in months ahead – PBOC’s Ma

FXStreet (Mumbai) - Ma Jun, Chief economist of the People’s Bank of China’s (PBOC) research department crossed wires via Bloomberg in last hours, noting that the recent monetary and fiscal easing should start to support growth while highlighting that the robust recovery seen in property sales has emerged positive for China.

Key Quotes:

“Some of the market participants are too bearish on the Chinese economic outlook,”

“I think partly because they didn’t recognize the few positive factors which will contribute to the stability of the growth outlook.”

"We have been cutting interest rates and providing some more fiscal support to the economy but its impact on the real economy will take time to show up,”

“This lagged impact in the coming few quarters will help support the growth trajectory as well.”

“Our technical analysis shows that the time lag between monetary policy action and its maximum impact on the real economy is about nine months,”

On the global outlook, Mr. Ma stated, “If true, that would indicate a strong export demand for the Chinese economy. I am hopeful that the global economy may be recovering, at least at a modest pace.”

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