China Press: China will not resort to aggressive monetary easing unless substantial changes in the economy

China’s Xinhua News Agency noted in its latest commentary that China will not resort to aggressive monetary easing until there are substantial changes in the economy.

Headlines:

Aggressive easing of the reserve requirement ratio and interest rate cuts will not only cause excessive liquidity but also dampen China's efforts to reduce overcapacity and pop asset bubbles

The central bank has adjusted liquidity through its open market operations, with tools including reverse repos and several lending facilities, which have so far proved effective in ensuring sufficient money supply and maintaining steady interest rates.

The mix of proactive fiscal policy and prudent monetary policy has also contributed to sound economic growth. Therefore, there is no reason for China to change course.