According to a Reuters report, Chinese government advisers will recommend economic growth targets for next year ranging from 4.5% to 5.5% at the ruling Communist Party’s annual Central Economic Work Conference.
Key Points:
- Five of the seven advisers favoured a target of around 5%, matching this year’s goal.
- One adviser will propose a 4.5% target, while the other suggested a 5.0-5.5% range.
- Would require Beijing to step up fiscal stimulus, the advisers said.
- Monetary stimulus is expected to play a more limited role as the central bank remains concerned about a widening interest rate differential with the West.
Market Reaction:
The headlines do little to influence the broader market risk sentiment, which continues to be weighed down by hawkish FOMC meeting minutes released on Tuesday.
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