Ex-PBOC Official: China can grow 5.5% in 2022

Dhwani Mehta FXStreet

“China's economy can grow 5.5% in 2022, and policymakers could set a higher economic growth target as long as inflation and systemic financial risks are under control,” a blog post run by China Finance 40 Forum reported on Wednesday, citing comments from Yu Yongding, a former member of People’s Bank of China’s (PBOC) monetary policy committee.

Additional quotes

“Boosting growth relies on infrastructure investment given the continuing economic downturn and weak expectations, so as to further drive manufacturing investment and lift consumption.”

“China should consider expanding the issuance of treasury bonds to raise funds for infrastructure projects, as local governments are short of funds to undertake investment tasks.”

Market reaction

USD/CNY flirts with daily lows just above 6.3200, down 0.09% on the day. The Chinese currency is benefiting from the amply liquidity injected by the central bank ahead of the Lunar New Year.

China's central bank Wednesday conducted 200 billion yuan (USD31.6 billion) of reverse repos to maintain liquidity in the banking system, per Reuters.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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