China Seeks Stable Economic Growth in 2012
In a policy conference yesterday it was reported that China will be maintaining their fiscal policies in 2012. The decision endorsed a decision by China’s top leadership suggesting that Beijing is not ready to shift into a pro-growth policy stance even with a cooling global economy.
China will ensure their macro economic regulation policies, while overall consumer prices will basically remain stable. This will guarantee the steady growth of the economy and maintain social stability. China will also keep the yuan stable while deepening interest rates and exchange rate reforms. The measures are aimed at calming the property market so that it can stabilize and ensure prices return to a reasonable level, encouraging more homes to be built and boost housing.
Economists say that Beijing is only ready to fine tune its economic policies, it will not bring itself to an outright monetary easing mode that will aid economic growth. People might feel disappointed, but so far there is only limited room for policy adjustments with inflation having just slowed and economic growth is not that strong.