China’s central bank, the People’s Bank of China (PBOC), has indicated it will adjust its monetary policy to support the nation’s economy in the face of increasing external challenges and domestic demand concerns, Reuters reports.
The PBOC, in its fourth-quarter monetary policy implementation report, emphasized the escalating impact of external shifts, along with ongoing domestic challenges and potential economic risks.
The central bank announced its intention to utilize a range of monetary instruments, including adjustments to interest rates and the reserve requirement ratio (RRR) for banks. It stressed that the intensity and pace of policy measures would be tailored in response to both domestic and global economic conditions.
The overarching objective is to maintain ample liquidity, stimulate a modest recovery in prices, and stabilize the yuan exchange rate at a reasonable and balanced level.
Since September, Chinese authorities have implemented various stimulus measures to bolster the economy, including interest rate cuts, cash injections, and efforts to tackle the hidden debt of local governments. The government has committed to further actions this year to provide sustained economic support.
In December, as deflationary pressures intensified and growth obstacles mounted, Chinese leaders transitioned away from their long-standing “prudent” monetary policy stance, opting for a “moderately loose” approach to counter the economic slowdown and stabilize growth. This policy shift underscores the urgent need to address the country’s complex economic challenges.
Related Topics:
