China’s central bank chief Zhou Xiaochuan confident of hitting economic growth target

China can achieve its growth targets without the need for massive monetary stimulus to boost the nation’s economy, central bank governor Zhou Xiaochuan said yesterday.

Zhou said the government would adopt prudent monetary policy and that other measures and reforms would help increase consumption and ensure the nation’s future economic growth.

“It’s unnecessary to take excessive monetary stimulus to achieve the growth target,” he said.

“With prudent monetary policy and other supportive macro measures, China is able to improve efficiency, domestic demand and innovation to achieve such [economic growth] goals. It is unnecessary to take extra ­measures.”

Zhou made his comments at a press briefing on the sidelines of the National People’s Congress in Beijing. He said, however, government policy would adapt if circumstances changed radically.

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“If there are any big accidents at home or abroad, monetary policy will be flexible to counter various shocks,” he said. China’s monetary policy has five modes, said Zhou: tighten, moderately tighten, prudent, appropriately loosen, and loose. Policy would remain in prudent mode, he said.