China central bank chief says plenty of room for adjustment in interest rates, RRR

China central bank chief says plenty of room for adjustment in interest rates, RRR
FILE PHOTO: China's Central Bank Governor Yi Gang speaks at the annual session of China Development Forum (CDF) 2018 at the Diaoyutai State Guesthouse in Beijing, China March 25, 2018. REUTERS/Jason Lee -
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JASON LEE(Reuters)
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NUSA DUA, Indonesia (Reuters) - China central bank governor Yi Gang said on Sunday he still sees plenty of room for adjustment in interest rates and the reserve requirement ratio (RRR), as downside risks from trade tensions with the United States remain significant.

China faces "tremendous uncertainties" ahead due to the impact of tariffs and trade frictions, and the country is seeking "constructive solution" to the current trade tensions, Yi said on the sidelines of the annual International Monetary Fund and World Bank meetings in the Indonesian island of Bali.

But the country's economic growth would still comfortably reach its full-year target of around 6.5 pct with the possibility of overshooting, Yi said, adding that he is comfortable with inflation levels.

China's monetary stance is still basically neutral, with neither easing nor tightening bias, he said.

(Reporting by Yawen Chen; Editing by Muralikumar Anantharaman)

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