International Monetary Fund Managing Director Christine Lagarde said on Thursday that she believes Chinese authorities are trying to maintain growth and stability in the face of a trade conflict with the United States, but added that this is a "complicated" balancing act.
"The Chinese authorities are certainly looking at options, I would think, in order to maintain a level of growth that would keep the economy under control, and we are seeing recent decisions from the PBOC to that effect," Lagarde said during a discussion at the IMF and World Bank annual meetings in Bali.
"I think that it's a complicated equation, where they have to both use the flexibility that is available, but at the same time be very attentive to their fiscal position," she added.
