China central bank signals measures to support economy
Monday, 05 11 2020, Category: Economy, Country: China
China’s central bank said on Sunday it will step up counter-cyclical adjustments to support the economy and make monetary policy more flexible to fend off financial risks.
The first-quarter monetary policy implementation report from the People’s Bank of China (PBOC) did not repeat the central bank’s long-standing vow to refrain from “flood-like” stimulus to support growth, reinforcing signs of more policy measures.
China’s long-term stable economic trend remains unchanged, despite the coronavirus outbreak, the central bank said.
“But at present, challenges faced by China’s economic development are unprecedented, we must fully consider difficulties, risks and uncertainties,” it said.
The bank said it will keep liquidity ample, using both aggregate and structural policy measures, and continue to deepen interest rate reforms to help lower borrowing costs and allocate financial resources more efficiently in the economy.
The central bank will also support the real economy, especially small and medium-sized enterprises, it said.