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China to avoid big economic stimulus - central bank chief

Published 10/05/2014, 09:29
Updated 10/05/2014, 09:32

BEIJING (Reuters) - China will not use any large-scale stimulus to boost its economy, Central Bank Chief Zhou Xiaochuan was reported as saying on Saturday, in response to speculation that authorities might lower reserve requirements for banks to spur growth.

Zhou, who was speaking at a closed-door session at the Tsinghua University, was also reported by Phoenix New Media Ltd as saying the central bank would only "fine-tune" its policy to counter economic cycles.

There has been market speculation that China may reduce the amount of cash commercial banks must hold as reserves at the central bank to shore up its economic growth, which fell to an 18-month low in the first quarter.

(Reporting by Koh Gui Qing; Editing by Clarence Fernandez)

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