Zhou Says China’s Economy Continues to be Fundamentally Healthy

Zhou Says China’s Economy Continues to be Fundamentally Healthy

Governor of the People's Bank of China, Zhou Xiaochuan, restated that there no reason to expect that the Chinese currency will continuously.

Mr. Zhou said, "There is no basis for persistent RMB depreciation from the perspective of economic fundamentals."

He also stressed that there were tools, which the government could use to limit the risks of a sluggish economic growth in the country.

On Friday while speaking at an international forum, Mr. Zhou said that the country's economy continues to be fundamentally healthy. According to him, the central bank still has means to use monetary policy in order to cushion China's economy. That hint's at probable interest rate cuts in the future.

He said, though growth is slower than "in the past, it is more sustainable. The fundamentals of the Chinese economy remain strong."

Zhou Xiaochuan hinted at a wider budget deficit for 2016 and mentioned plans of reducing overcapacity in the economy. He mentioned the exchange rate for yuan or the Chinese currency as "broadly stable again."

The main focus of discussion for the ongoing two-day meeting of the group of 20 central bankers and finance ministers is the economic outlook of China.