Beijing. The People’s Bank of China said Wednesday it will accurately and effectively implement prudent monetary policy, pay more attention to countercyclical adjustments, and strive to expand domestic demand and boost confidence.
China’s central bank will support banks to replenish capital and guide financial institutions to increase medium- and long-term lending to the manufacturing industry, it said in a statement issued after a quarterly meeting of its monetary policy committee.
Economic data for the January-February period and the survey of factory owners for March pointed to a bright start to the year for the world’s second largest economy and offered relief to Chinese policymakers, who were trying to revive the economy after it will not achieve a sustainable recovery after its reopening.
China’s economic performance continues an upward trend, “but it still faces the challenges of insufficient effective demand and the weakness of social expectations,” the institution acknowledged in the statement, citing the meeting.
The entity will “intensify the force of application of the introduced monetary policy” and maintain reasonably ample liquidity.
Likewise, a “soft rise” in prices will improve and keep them at a reasonable level, as the economy faces deflationary pressures.
The institution also said it will guide major banks to play the role of main force in providing financial services to the real economy.
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– 2024-04-05 10:17:42
