PBOC’s Ma: Setting GDP target may force China to resort to flood-like stimulus

Dhwani Mehta FXStreet

In an interview with the Chinese state media on Tuesday, Ma Jun, an external adviser to the People's Bank of China’s (PBOC) monetary policy committee (MPC), said that setting a GDP target may force China to resort to flood-like stimulus.

He added that GDP growth between 4 to 5% will be difficult to achieve for China.

This comes despite a positive surprise seen on the Chinese official Manufacturing and Services PMI reports released earlier today, with the business activity and factories getting back to normal operations following the coronavirus outbreak led shutdown.

Meanwhile, the World Bank projected a lower growth scenario for China at 2.3%, in its latest report.

USD/CNH: Pressured below 7.1100 after China Purchasing Managers Index

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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