Global economies need to be more prudent, central bank official says

Countries should be more prudent when coming up with monetary and fiscal policies to boost economy against the COVID-19 epidemic, Guo Shuqing, Party secretary of the People's Bank of China, suggested at the 12th Lujiazui Forum, which began on Thursday.

Guo said different economies have so far come up with a number of fiscal stimulus packages with unprecedented scale and enforcement. These policies may have strong effect at the very beginning, but there are already signs of the diminishing marginal effect.

"The epidemic may still be alongside with us for a relatively long time. It is still unknown how many economies are planning for new stimulus packages. But it is our advice that regulators should save some room for the future," Guo said.

"China values very much our regular monetary and fiscal policies. We will not pour cash into the market or adopt monetization of financial deficit. Negative interest rate will neither be implemented," he added.