China: Growth should be above the government's lower bound - ING

Iris Pang, economist at ING, is forecasting that China’s GDP growth at 6.2%YoY in 1Q19, which will be lower than 6.4%YoY in 4Q18, which is better than the government's lower bound target of 6.0%.

Key Quotes

“There is a real need to keep credit growth continuing to keep GDP growth above 6%. That's why we still expect a 0.5 percentage point RRR cut in April.”

“But we don't think there is a need for the government to increase fiscal stimulus as growth should continue to increase in 2019 when money is put into infrastructure production and so long as monetary easing continues.”