DAVOS, Switzerland (Reuters) - China’s central bank should keep monetary policy stable because there is no serious nationwide housing problem despite falling prices in some cities, People’s Bank of China chief Zhou Xiaochuan said on Wednesday.
Speaking at the World Economic Forum in Davos, he said a cyclical adjustment was under way in the housing market, which could be addressed in part by macroprudential policies such as loan-to-value ratios rather than by monetary policy.
”For the central bank, we think basically to keep monetary policy stable because this is not a nationwide serious problem.
“Generally, if the average indicator of the Chinese economy is OK, the way for the central bank to have a specific policy targeted to the real estate market is difficult,” he said.
Zhou said Chinese markets were nervous because of the fall in oil and commodity prices and urged stock market investors to focus on the fundamentals of companies to avoid any potential price bubble.
Writing by Paul Taylor; Editing by Andrew Heavens