China’s Premier Wen Jiabo has warned that China’s economy is under pressure and that its economic problems may take some time to be resolved
Premier Jiabo’s comments come amid worries of a sharp slowdown in China’s economy.
The world’s second largest economy grew at its slowest pace of growth rate, 7.6%, during the second quarter in three years.
China’s economy has been hardly hit by the decline in demand for Chinese products in the Eurozone and the US, two of China’s biggest markets.
The People’s Bank of China has already cuts its key interest rates twice since the start of June, as part of the country’s policy easing measures. The bank has also lowered down the amount of reserves that country’s banks can keep.
Analysts said Mr Wen’s comments indicated that Beijing was likely to ease policies further to sustain growth.
“We continue to believe that a reserve ratio requirement cut is more likely than a rate cut and expect a move soon,” said Dariusz Kowalczyk, a senior economist & strategist, at Credit Agricole CIB in Hong Kong.
