China’s central bank commits to bolstering economic recovery efforts

China’s central bank, the People’s Bank of China, announced on Friday that it will ensure there is reasonably ample liquidity and credit expansion to strengthen the country’s economic recovery, which still faces numerous challenges. In its quarterly monetary policy implementation report, the bank stated it will guide credit growth and maintain ample liquidity to support the real economy.

The bank emphasized the importance of stabilizing monetary policy, maintaining macroeconomic policy consistency, and implementing counter-cyclical and cross-cyclical adjustments. It aims to enhance support for the real economy to solidify the positive trend of economic recovery, especially given the global economic uncertainties and challenges faced by the domestic economy.

The Chinese government has pledged to boost support for the economy through prudent monetary policies and proactive fiscal measures, including adjustments to interest rates and bank reserve requirement ratios. The central bank will carefully manage the relationship between credit and bond markets while promoting balanced credit growth and allocation.

Additionally, the central bank plans to maintain the stability of the yuan to prevent exchange rate risks. Despite slight weakening of the yuan due to reports of trade restrictions from the United States, the central bank is focused on ensuring stability. It expects mild consumer price increases and a narrower contraction in producer prices by the end of the year.

Overall, China’s central bank is committed to supporting the economy’s recovery by providing adequate liquidity, managing credit growth, and maintaining a stable exchange rate to address the challenges and uncertainties ahead.