China Vows to Issue More Debt, Cut Interest Rates Next Year
UPDATE 1-China vows to issue more debt, cut interest rates next yearAdds quotes, detailBy Ellen Zhang and Kevin Yao. China pledged on Thursday to increase the budget deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate as it gears up for more trade tensions with the United States.This dovish shift in messaging shows China is willing to go even deeper into debt, prioritising, at least in the near term, growth over financial risks, analysts said.At CEWC, Beijing sets targets for economic growth, the budget deficit, debt issuance and other variables for the year ahead. The targets are agreed at the meeting, but won't be officially released until an annual parliament meeting in March. Reuters reported last month that government advisers recommended that Beijing keeps its growth target of around 5% unchanged next year.The CEWC readout said it was "necessary to maintain steady economic growth," but did not mention a specific number.