Thursday, June 8, 2023
HomeEconomyChina's central bank will step up efforts to support economic recovery

China's central bank will step up efforts to support economic recovery

BEIJING (Reuters) – China’s central bank said on Thursday it would step up efforts to consolidate the economic recovery, citing a range of risks to the global economy, while pledging to implement prudent monetary policy and keep liquidity reasonably ample.

The People’s Bank of China also said it would focus on stabilizing employment and prices, and seeking ways to help reduce the cost of corporate financing and consumer credit.

“Global growth is slowing, inflation is running high, geopolitical conflict persists, and the external environment has become more complex and severe,” it said in a statement after the quarterly meeting of the Monetary Policy Committee .

and added that while the domestic economy continues to recover, “it still faces the triple pressure of shrinking demand, supply shock and weakening expectations.”

The government has A raft of measures to support the economy was rolled out in June, narrowly avoiding a contraction in the June quarter, but the recovery remains shallow due to strict COVID containment measures and a property slump.

The central bank quoted on Thursday Other measures include accelerating the use of special loans to ensure the completion of home sales, and plans to guide commercial banks to provide financing support for the program.

The central bank also pledged to keep the RMB exchange rate basically stable, enhance currency flexibility, strengthen expectation management, and guide enterprises and financial institutions to adhere to the concept of “risk neutrality”.

On Thursday, the yuan rebounded from a 14 year low against the dollar in the previous session, ending an eight-day losing streak The move comes after the central bank warned against speculative trades and massive one-way bets on the currency.

Premier Li Keqiang was quoted by state media on Wednesday as saying that China’s economy generally recovered and stabilized in the third quarter and will continue to advance economic plans in the fourth quarter.



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