Bloomberg News

Haitong’s Hu Says China Monetary Policy to Be Prudent

May 15, 2012

(Corrects headline and quote to say “prudent” instead of “prudish” in story originally published May 12.)

Yifan Hu, chief economist at Haitong International Securities (665) comments on China’s move to cut reserve requirement ratios by 50 basis points on May 18. Hu commented in an e-mail.

On China’s monetary policy:

“It is well in line with our expectation. We forecast the rate cut after the April data was announced, as we expected the real economy to decelerate too fast. Monetary policy is expected to remain prudent, as inflationary pressure stays high this year. Meanwhile, we expect more supportive fiscal policy, mainly in the field of infrastructure projects.”

To contact the reporter on this story: Liza Lin in Shanghai at llin15@bloomberg.net

To contact the editor responsible for this story: Kae Inoue at kinoue@bloomberg.net


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