Trade war impact on economy not big, but stocks, currency markets need to be watched, says adviser to China's central bank

Monetary policy should respond when there is significant downward pressure on the economy, said a policy adviser to the People's Bank of China.
Monetary policy should respond when there is significant downward pressure on the economy, said a policy adviser to the People's Bank of China.PHOTO: AFP

TIANJIN (REUTERS) - The impact on China's economy from Beijing's and Washington's ongoing trade war is not significant, but the impact on stock and currency markets needs to be watched, an adviser to China's central bank said on Tuesday (Sept 18).

Liu Shijin, a policy adviser to the People's Bank of China, said at a conference in the city of Tianjin that it is normal for China's economic growth rate to slow further, and that monetary policy should respond when there is significant downward pressure on the economy.

European Commission Vice President Valdis Dombrovskis said at the same conference that multilateral trade systems needed to be preserved.