People’s Bank of China (PBOC) Governor Pan Gongsheng stated on Monday that the central bank will utilize interest rate and reserve requirement ratio (RRR) tools to ensure ample liquidity in the economy.
In his comments, Gongsheng reaffirmed China’s plan to increase the fiscal deficit as part of efforts to stimulate economic growth. He emphasized that China will continue to be a key driver of the global economy, with a policy focus shifting toward investment and consumption to fuel further expansion. However, Gongsheng acknowledged that challenges persist in China’s economic development, and there will be a strong focus on boosting residents’ consumption demand.
Gongsheng also noted that China’s real estate market is stabilizing, reaching a new equilibrium. Additionally, he outlined plans to significantly increase China’s national foreign exchange reserve allocation in Hong Kong. The PBOC will also support Hong Kong’s monetary authority in using exchange funds to replenish the offshore Renminbi market.
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