The Chinese government should adjust its policies to de-risk the real estate sector and ease the economic turmoil caused by the coronavirus pandemic, said Gopinath, the first deputy managing director of the International Monetary Fund (IMF).
“Urgent action at the central government level is needed to safeguard financial stability” in the real estate sector, Gopinath said in a video address to the Caixin summit in Beijing on Wednesday.
Gopinath First Deputy Managing Director of the IMF
Photographer: David Paul Morris/Bloomberg
He argued that China’s “zero-corona” policy, which is to fully contain the new coronavirus, must be “adapted to reduce the impact on the economy”. This is crucial for a sustained and balanced economic recovery, she said.
He also said that low inflation and slowing growth would create space for more policy support for households, which would boost consumption.
The People’s Bank of China warns against inflation
However, the People’s Bank of China (PBOC), in its quarterly monetary policy report released in late 2016, warned that inflation could accelerate if aggregate demand in the economy were to increase, limiting the possibility of further monetary easing. . one chance.
“We are looking at the underlying potential for higher inflation, especially changes on the demand side,” he said. At the same time, you have pledged to strengthen economic support and maintain liquidity at a reasonable and broad level.
Original title:IMF’s Gopinath urges China to act on Covid Zero, Property、The PBOC’s warning on policy easing signals inflation may be limited(extract)
