China will not change monetary policy direction: central bank

[BEIJING] There is no need for China to change monetary policy direction as policymakers are confident on the economic growth outlook, Central Bank Vice Governor Hu Xiaolian said on Thursday.

China is facing a crucial problem that cooling inflation is lifting real interest rates, Hu said.

Hu also said that a 7.4 per cent economic growth rate for China is reasonable.

Annual economic growth slowed to 7.3 per cent in the third quarter, the weakest pace since the depths of the global financial crisis, and down from 7.5 per cent in the previous quarter.

The central bank unexpectedly cut interest rates on Friday for the first time in more than two years to support the cooling economy, but said it did not represent a change in monetary policy.

REUTERS