IMF Hails China's Policy Response in Financial Crisis

Chinese authorities "quick, determined and effective" policy response has helped mitigate the impact on the economy and ensured that China has led the global recovery, the International Monetary Fund (IMF) said on Tuesday.

"Executive Directors commended China' s proactive and decisive policy response to the global economic crisis," the IMF Executive Board said in its annual report on China's economic policy assessments and recommendations after consultation with Chinese authorities.

The IMF appraised fiscal stimulus China adopted during the crisis. "Public infrastructure spending was quickly increased, taxes were lowered, the government put in place incentives to boost purchases of consumer durables, and pensions, social transfers, healthcare and education spending were all raised," it noted.

On the part of monetary policy, the report noted that China's central bank lowered interest rates and reserve requirements, and removed limits on credit growth, which led to an extraordinary surge in bank lending.