China's macro policies capable of stabilizing 2022 economic growth: expert

BEIJING -- China's fiscal and monetary policies have retained room to ensure the country's stable economic growth in 2022, an expert said at a press conference on Friday.

Li Yang, former-vice president of the Chinese Academy of Social Sciences, said the two policies launched in 2021 were non-expansive, and the country saw an increased surplus in its budget compared to previous expectations, which allows more government spending, if necessary, to maintain steady growth.

As for monetary policy, China has recently rolled out a set of expansive measures, including lowering the market-based benchmark lending rate and cutting the reserve requirement ratio, Li said.

On Jan 20, China cut the market-based benchmark lending rate as authorities stepped up monetary support to shore up the economy, with the one-year loan prime rate at 3.7 percent, down from 3.8 percent a month earlier.

In December 2021, China's central bank cut the reserve requirement ratio by 0.5 percentage points for financial institutions to support the development of the real economy and reduce comprehensive financing costs.

These measures show that we still have the ability, willingness and space to use macro policies to stabilize economic growth, Li said.