The chief of the International Monetary Fund (IMF) said he
believed China would pursue economic policies that benefit both the
country and the world.
Completing a one-day meeting with top Chinese officials, IMF
Managing Director, Rodrigo Rato, said he shared the view with
Chinese policymakers about the need to rebalance the growth pattern
of the Chinese economy.
"Sustaining the rapid pace of growth is a challenging task, and
we agree with the authorities that this requires rebalancing the
economy away from its current heavy dependence on investment and
exports and toward consumption," he said.
He made the remarks at a news conference after his meetings with
Premier
Wen Jiabao, central bank Governor
Zhou Xiaochuan and Finance Minister
Jin Renqing.
"It was clear to me in my discussions today that China's leaders
have a clear understanding of the issues that they address," he
said.
Rato said China's rebalancing endeavors form an integral part of
the efforts that need to be made by all the major economies to
ensure an effective resolution of the problem of global
imbalances.
Rato said he was impressed and encouraged by the decisions made
at the National Financial World Conference held earlier this month,
which laid down plans for further market-oriented reforms in the
financial sector.
He said China should allow monetary policy to play a bigger role
in its management of the economy. In particular, a more flexible
exchange rate of its currency will be helpful for the country's
effort to rebalance the economy, he said.
He said a flexible exchange rate could also help the country
tackle such problems as an overly large stockpile of foreign
exchange reserves.
Related:
China Aims to Allow Greater Exchange Rate
Flexibility over Time: IMF Chief
IMF Chief Calls for Public Spending to Help Boost
China's Consumption
(China Daily January 27, 2007)
