MNI POLICY: Normal Monetary Tools to Be 'Treasured': PBOC's Yi

     BEIJING (MNI) - China is not eager to pursue "relatively large reduction"

in required reserve ratios or quantitative easing and interest rate cuts like

other central banks, Governor Yi Gang of the People's Bank of China said. The

following is his main response to the press at a conference in Beijing on

Tuesday:

     - While some (in other countries) advocate negative interest rates, "we

believe when conducting monetary polices, we should treasure the space left to

conduct normal monetary policies; we pursue normal policies, which are better

for overall economic growth and the people's welfare;

     - "Indeed data show China's economy is slowing" as the world economy slows;

     - "Our overall assessment of the economy is that it is still within a

reasonable range;

     - China still has large capacity for fiscal and monetary policies to

respond to a slowdown. China's interest rates are reasonable, the required

reserve ratios have sufficient room for future adjustment;

     - China needs to be "steady" when pursuing its policies;

     - Monetary policy tools should be reserved for when the economy really

deteriorates, and when the main monetary tools are used up.

     - 

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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