China has lots of policy room if trade war worsens, says central bank chief

People's Bank of China Governor Yi Gang gave no indication that the government was considering more fiscal stimulus now to counteract the effect of the trade war

China has “tremendous” room to adjust monetary policy if the trade war with the US deepens, People’s Bank of China Governor Yi Gang said.

“We have plenty of room in interest rates, we have plenty of room in required reserve ratio rate, and also for the fiscal, monetary policy toolkit, I think the room for adjustment is tremendous,” said Yi in an exclusive interview in Beijing.

Asked if his scheduled bilateral meeting with US Treasury Secretary Steven Mnuchin on the sidelines of the Group of 20 gathering of finance ministers and central bank governors in Japan over the weekend would get negotiations