China faces ‘tremendous uncertainties’ due to trade friction, says bank chief
China central bank governor Yi Gang still sees room for adjustment in interest rates and the reserve requirement ratio
China central bank governor Yi Gang said on Sunday he still sees room for adjustment in interest rates and the reserve requirement ratio (RRR), as downside risks from trade tensions with the US remain significant. China faces "tremendous uncertainties" due to the effects of tariffs and trade friction and is seeking a "constructive solution" to the current trade tensions, Yi said at a seminar on the sidelines of the annual IMF and World Bank meetings in Bali. "We still have plenty of monetary policy instruments in terms of interest rate policy, in terms of RRR. We have plenty of room for adjustment, just in case we need it," Yi said. Beijing and Washington have slapped tit-for-tat tariffs on each other and plans for bilateral trade talks to resolve the dispute have stalled, triggering a market rout and putting pressure on China’s already softening economy and weakening currency. Yi said China’s economic growth would still comfortably reach its full-year target of 6.5% in 2018 with po...