Wen calls for 'moderately loose' monetary policy

Premier Wen Jiabao said China should adopt a “moderately loose” monetary policy and that China’s economy is in a “key moment,” Bloomberg reported. According to a statement published on government websites, Wen called for “proactive financial policies” during a trip to the northern province of Hebei. “We should focus on structural adjustments while maintaining economic stability and relatively fast growth,” Wen said. His comments follow a statement by the State Council last week that China’s economy has entered a “critical” phase and that a recovery has yet to find firm footing. Falling exports, industrial overcapacity and rising unemployment makes reviving economic growth difficult, the State Council said. China’s GDP grew by 6.1% in the first quarter of the year, the slowest growth in almost a decade.