Wen hints at further monetary easing

Chinese Premier Wen Jiabao acknowledged headwinds facing the economy but expressed confidence that growth targets would still be met this year, hinting that Beijing may ease monetary policy in the near future, Bloomberg reported. “We have the conditions and capabilities, and will be sure to fulfill this year’s economic and social development targets,” he said while visiting Zhejiang province on Wednesday. Wen added that economic headwinds remained “relatively large” but insisted that China had “growing room for monetary policy operation.” Wen’s comments are the most direct hint yet that further easing, in the form of lower reserve requirements for banks or interest rate cuts, could be on the horizon. “Policy makers have made clear in recent weeks that supporting economic growth is their central concern,” said Qinwei Wang, an economist at Capital Economics.