No change to China's prudent monetary policy despite outbreak

Chinese monetary authorities reaffirmed the nation will keep its prudent monetary policy stance unchanged, despite the novel coronavirus outbreak, and will use conventional toolkits to strengthen economic growth, according to a senior central bank official on Thursday.

Some international organizations showed concern recently that the spreading of the novel coronavirus may add slowdown pressure on the global economy, which specifically influences foreign trade, industrial chains and financial markets.

"We have noticed the impact and achieved a consensus that the impact will be short-lived, which cannot change the foundations of the Chinese economy, or the long-term growth momentum," said Liu Guoqiang, vice-governor of the People's Bank of China, the central bank.

As the world's second-largest economy, China will continually play a significant role in contributing to the global economic growth, said Liu.

"China is one of the few major economies in the world that have maintained normal monetary policy and we are still far from using the unconventional tools, such as the zero and sub-zero interest rates," he added. "China has sufficient policy space to support steady economic growth. Equipped with a rich policy toolkit, China is capable of coping with various uncertainties."

The central bank official said additional countercyclical measures will be taken to maintain ample liquidity and further reduce the lending rates.