China won’t use QE for economy, says Premier Li

Chinese premier Li Keqiang.

BEIJING: China won’t resort to using quantitative easing (QE) or massive deficit spending in order to support the economy because such approaches would store up problems for the future, Premier Li Keqiang said.

“We certainly need to take strong measures to face the downward pressures,” Li told a news conference at the close of the annual National People’s Congress session in Beijing. “We have policies in reserve for that purpose. We can use price tools such as reserve-requirement ratios, interest rates. We are not going towards monetary easing, but effectively supporting the real economy.”