PBOC reveals in a working paper released this week
The Chinese central bank says that the growth rate is "medium to high" as they expect the maximum the economy can grow without stoking inflation fears i.e. potential growth is at 5% to 5.7% during the government's five-year plan through 2025.
Notably, the PBOC argues that traditional large-scale fiscal and monetary stimulus is not of much benefit to lift output growth and such stimulus will only lead to inflation and an increase in debt, raising systemic risks to the economy instead.
This is perhaps building on the fact that they are seen dialing back some stimulus as of late, which has prompted jitters in Chinese markets in recent weeks.
Going back to the PBOC estimate above, bear in mind that China expects to see its economy grow by 'over 6%' this year.
