China central bank says no plans for big economic stimulus

BEIJING (AP) — China’s central bank governor says policy will stay “stable and healthy,” suggesting Beijing has no plans to join the United States and Europe in cutting interest rates to stimulate economic growth.

Yi Gang said Tuesday the People’s Bank of China will avoid a “massive stimulus.”

Beijing is trying to shore up cooling economic growth amid a tariff war with Washington but is wary of any steps that might add to debt levels that are so high that rating agencies have cut China’s credit rating.

At a news conference, Yi said policy should “stay committed to our own course and stick with the orientation which is stable and healthy.”

He said China needs to ensure “the total debt level remains sustainable.”

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