BEIJING — China has ample policy tools to support the virus-hit economy, but it will tread warily in cutting the benchmark deposit rate due to elevated inflation and the potential impact on ordinary savers, Liu Guoqiang, a vice central bank governor, said on Friday. "The Chinese economy will continue to show extreme resilience," Liu told reporters at a briefing. "In addition, we have abundant tools and ample policy space to stabilize economic growth. I think the impact of the epidemic on China's economy is temporary," he said. He said China's first-quarter economic data would definitely not look good compared to pre-epidemic levels, but the impact could be temporary, pointing to a clear improvement in March data from February.

Source: International New York Times April 03, 2020 05:54 UTC