Flexibility crucial for policy gains

Prudent monetary stance 'can help China deal with economic risks'

Chinese policymakers need to be more vigilant and decisive while formulating monetary policy and keep it flexible to deal with uncertainties that could hamper economic growth in the coming months, economists said.

Globally, monetary policy normalization in some large developed economies, or the retreat from quantitative easing after the global financial crisis, may become one of the major uncertainties for China, requiring highly cautious policymaking that aims at building buffers and increasing resilience, a group of economists from the International Monetary Fund said on Thursday.