China’s central bank said on Wednesday that it would tighten policy and implement monetary policy in a “precise and forceful” manner to help the economy recover.
The People’s Bank of China (PBOC) said in a statement following a quarterly meeting of its monetary policy committee that it will keep liquidity reasonably ample while maintaining stable credit expansion.
“The current external environment is becoming more complex and severe, international economic trade and investment are slowing down, inflation is still high, and interest rates in developed countries remain high,” the bank stated.
“The domestic economy continues to recover and improve, within increasing momentum, but it still faces challenges such as insufficient demand.”
“We need to continue to work hard and take advantage of the improving momentum, step up macro policy adjustments, implement the prudent monetary policy in a precise and forceful manner,” the Bank of China stated.
After a flurry of modest policy measures, the world’s second-largest economy appears to be stabilising, but the outlook is clouded by a property downturn, ageing demographics, high debt, and geopolitical tensions.
According to the central bank, China will increase government investment and policy incentives to spur private investment and promote price recovery from a low level.
The PBOC reiterated its commitment to keeping the yuan stable and avoiding currency overshooting.
The central bank also promised to promote the property market’s healthy and stable development.
info source – Reuters