Critics say the crisis was a missed opportunity to resolve structural problems and help the country transition from export-oriented and investment-led growth to an economy driven by consumption.
“If you have a period to emphasise structural reform and other long-term development strategies, you should not have overreliance on monetary policies,” Zhou said, adding that fiscal policy should play a key role in such reforms.
“We [also] need reform to streamline the relationship between central and local governments as well their responsibilities,” he said.
Zhou said the country could use monetary policy to address domestic reflation and various external pressures.
He said reflation was already taking place in some countries and there had been “obvious changes” this year.
China’s producer price index ended a four-year contraction in September and rebounded sharply, raising worries about consumer inflation as well.
In face of the US Federal Reserve’s three interest rate rises in the past 18 months and more possibly on the way, the PBOC has changed its tone to a neutral policy with a tightening bias.
China has also imposed tighter capital controls to prevent outflows and rapid depreciation of the yuan.
Tsinghua University finance professor Li Daokui, who is a former member of the PBOC’s monetary policy committee, said reforms were going slower than most wished and the government was worried about spillover effects from Fed moves on the Chinese economy.
“Zhou has tried to support the reform process,” he said.
