China: Current Monetary Policy Needed to Aid World Recovery

October 6, 2009 Posted by China Briefing Reading Time: < 1 minute

Oct. 6 – Alluding to its continued control of the yuan, Chinese Finance Minister Xie Xuren that said the country’s “moderately loose” monetary policy fiscal policy was needed to keep the world’s economic recovery intact.

“We are soberly aware that the economic rebound is yet to be stable, firm or balanced,” Xie said in a speech today in Istanbul. Xie is in Istanbul for a meeting of the Group of 20.

“In this regard, China will continue its proactive fiscal policy and moderately loose monetary policy, further implement and improve its policy package and ensure the achievement of our social economic development goals.”

China is using its RMB4 trillion stimulus package to boost its already potent infrastructure, building railways, roads, bridges and power plants, mostly in the underdeveloped central and western regions of the country. So far, the spending has helped raise economic growth to 7.9 percent in the second quarter of the year, up from 6.1 percent in the first.