In reducing the reserve requirement ratios, the MB recognized the continued downtrend in domestic inflation with headline inflation averaging at 3.6 percent in the first four months of 2019, which is within the target band of 3.0 percent ± 1.0 percentage point. The BSP was also guided by the benign inflation forecasts of 2.9 percent for 2019 and 3.1 percent for 2020.
Zhou: China is in the transition from a planned economy to market economic system, therefore its economic development does not display clear cycles as the matured economies do.