Not much more to go on other than the headline on the wires over the weekend.

  • People’s Bank of China (PBOC) governor Zhou Xiaochuan was reported as saying that China will not use any large-scale stimulus to boost its economy, apparently in response to speculation he might lower reserve requirements for banks to spur growth.
  • He was also reported by Phoenix New Media Ltd as saying the central bank would only “fine-tune” its policy to counter economic cycles.

Zhou was speaking at a closed-door session at the Tsinghua University.

The ‘no new big stimulus’ message has been very clear from Chinese authorities recently, so its not as if these comment should come as much of a surprise. But, is it just me …. if he was asked a question about reserve requirements and he responded by saying something about large-sale economic stimulus … then maybe he didn’t really answer the question? Or, alternatively, perhaps my tin hat is on a bit too tight this morning? (of course, loosening of the reserve requirement would be a stimulus so I’m going with option #2 …