Official: China looks to rate cuts to boost growth

A top official at a government think tank said Thursday that China is more likely to cut interest rates, reduce bank reserve ratios and carry out other economic reforms to stimulate growth, rather than launching an expensive fiscal stimulus plan, Reuters reported. Two more interest rate cuts and three more reserve ratio (RRR) cuts are possible before the end of the year, said Cao Wenlian, the former deputy director of the finance department at the National Development and Reform Commission, and the current deputy secretary general of the China Center for International Economic Exchange. China does not need another stimulus like the RMB4 trillion (US$628 billion) package it introduced in 2008 and 2009; instead, recently announced “fine-tuning” policies are enough to ensure growth, Cao said.