China says in ‘no rush’ for economic stimulus

China is in  “no rush” to add a monetary stimulus to cope with downward pressure on the world’s number-two economy, the head of the country’s central bank said Tuesday.

A lingering trade war with the United States and cooling growth has raised expectations that Beijing may resort to an a round of stimulus measures to provide a kickstart.

Major central banks, including the Federal Reserve and the European Central Bank, have also cut borrowing rates or signalled the willingness to do so in recent months.

But People’s Bank of China boss Yi Gang told a news conference:  “We are not in a rush to act as central banks of some other countries have done.” He said there was no pressing need for big policy easing steps or to further cut the amount of cash lenders must keep in reserve to release more money into the stuttering economy.

“Monetary policy must remain prudent,” he said, adding that there was ample room for both fiscal and monetary policy manoeuvering.

Earlier this month, the PBoC slashed reserve requirement ratios for banks, freeing up about $126 billion to boost lending to mostly small and medium enterprises.

China’s economy showed signs of strain as industrial output in August grew at the slowest pace in 17 years and as investment and retail sales flagged.