China’s central bank on Wednesday sharply cut the inflation projection for the year and lowered the growth forecast slightly as it expects the government measures to underpin the momentum.
The People’s Bank of China lowered the inflation forecast to 1.4 percent from 2.2 percent seen earlier.
The growth forecast was reduced to 7 percent from 7.1 percent.
The report was authored by a group of economists led by Ma Jun, the PBOC chief economist.
China’s economic growth had eased to 7 percent in the first quarter, the weakest pace in six years, from 7.3 percent in the previous three months.
The PBoC slashed interest rates for the third time in six months, with the latest reduction announced in May.
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