October 14, 2012 / 6:57 AM / 5 years ago

China stimulus appropriate to counter slowdown: central bank

TOKYO (Reuters) - China's fiscal and monetary stimulus will be appropriate to counter the country's economic slowdown and avoid any negative fallout, a central bank deputy governor said on Sunday.

China's economic growth has slipped for six consecutive quarters compared with a year earlier and figures on Thursday are expected to show the slide continued in July-September.

"The stimulus package, I think, this time will be appropriate in terms of size," Yi said.

"When I say appropriate in terms of size, that is large enough to stabilize growth, but not too large to cause some further negative impact, or negative problems in the future," he said.

China has cut interest rates twice this year and lowered banks' reserve requirement ratio three times since November to bolster economic growth that is forecast to sink to its lowest in 13 years at 7.7 percent in 2012.

The central government has also approved $157 billion of spending on infrastructure projects to try to energize the economy.

Yi's comments were made in response to a question about the size of China's stimulus from a member of the audience after he had given a speech at an event on the sidelines of the International Monetary Fund meeting in Tokyo.

Since last year, China has adopted policy "fine tuning" to support its economy, wary of the sort of aggressive steps taken during the global financial crisis when Beijing unleashed a 4 trillion yuan stimulus package.

It set off fervent infrastructure building by local governments leading to a buildup of 10.7 trillion yuan in debt, up to a third of which some analysts estimate could be underperforming.

Reporting by Koh Gui Qing' Editing by Neil Fullick

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