Soundbites

Direct and indirect policy stimulus continued to support real GDP growth at a steady 6.7 percent rate in the third quarter. Very rapid growth in sales of commercial and residential buildings is likely partly related to measures implemented in the last two years to ease access to mortgages. Although household debt is currently low, increased reliance on construction and real estate activities exposes the economy to a reversal in these markets. We expect the economic growth to stay around 6.5 percent this year.

Marie Diron, associate managing director at Moody's Investors Service

More targeted property cooling measures are possible if buyer sentiment in overheated cities does not ease more visibly soon. The government may not push much more on fiscal policy until growth weakens visibly, which may not be until year-end. Given policymakers' recent property bubble and rising leverage concerns, and the fact that this year's GDP target looks set to be met without much need for additional quasi-fiscal support, neither do we expect any notable credit acceleration or interest rate cut by year-end.