PBOC Governor Yi warns 'downturn will stay for a long time'

Author: Adam Button | Category: Central Banks

Yi published an article on Sunday

Yi published an article on Sunday
PBOC Governor Yi Gang warned about downside risks in an article in Qiushi Sunday.

"The world's economic downturn will likely stay for a long time," he wrote. "We should stay focused and targeted, while not competitively lowering interest rates to zero or engaging in quantitative easing."

He said the PBOC should be prepared for a "mid-and long-distance race and use conventional tools for as long as possible.

The comments are a hint that domestic growth forecasts for 2020 will be below 6%

Separately, Yu Xuejun, chairman of the supervisory board for key state-owned financial institutions at the China Banking and Insurance Regulatory Commission, said in a weekend article that effective transmission of monetary policy is a problem, and that a contraction in credit is a risk.

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