A Chinese central bank advisor has called for setting a flexible growth target for 2017. China's economy showed 6.7 percent growth rate in the third quarter of the previous year. The economy is likely to achieve its annual target of 6.5 to 7 percent growth rate.

According to Xinhua news agency, Huang Yiping, a monetary policy committee member of the central People's Bank of China and a professor in Peking University, said that the government should set flexible economic growth target for 2017. Yiping stated that such growth rate target will allow the government to pursue economic reforms.

Like Us on Facebook

Huang recommended setting economic growth rate for 2017 in the range of 6 to 7 percent, down from 6.5 to 7 percent growth rate for 2016. Huang added, "As long as employment is stable, a slightly wider growth target range in the short term will reduce the need for pro-growth efforts and give policy makers more room to focus on reforms."

The Chinese government took a number of steps in 2016 to boost growth rate including increased government spending in infrastructure sector and curtailing debt levels. The government also addressed the issue of industrial overcapacity.

Authorities are likely to focus on protecting the financial system in 2017. Their main priority will be to avoid bubble and excessive risk taking. Bloomberg also quoted an unnamed source stating that achieving the growth target will take a back seat to keep the economy safe and sound.

The Chinese government may also take measures to control the impact of growth rate targets on its monetary policies. Huang said that the government may tighten monetary policies in 2017.

TagsHuang Yiping, people's bank of china, exchange rate