People's Bank of China Confirms Commitment to Support Monetary Policy Amid Economic Recovery

Thursday, 12 September 2024, 22:40

People's Bank of China is committed to supportive monetary policy to bolster economic growth. Central bank chief Pan Gongsheng emphasizes efforts to stabilize the yuan exchange rate and manage financing costs amidst financial risks and local government debt challenges.
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People's Bank of China Confirms Commitment to Support Monetary Policy Amid Economic Recovery

Strategic Monetary Policy from People's Bank of China

As risks in China's financial landscape begin to ease, the People's Bank of China (PBOC) is poised to implement supportive monetary policy measures. In a recent interview, PBOC governor Pan Gongsheng highlighted the bank's focus on stabilizing the yuan exchange rate and fostering economic recovery.

Addressing Local Government Debt and Financial Risks

Local government debt remains a pressing issue for China, with financing platforms' debts being extended or restructured to alleviate pressure. High-risk banks have reportedly decreased significantly, indicating an overall improvement in financial health.

  • PBOC aims for reasonable credit growth.
  • Financing costs for businesses and households are targeted to decline.
  • Current economic conditions require focused support in key areas.

Impacts on Monetary Policy and GDP Growth

The PBOC's monetary policy adjustments correspond with slow credit demand and a consistently low M1 money supply index. Despite a GDP growth of 5.3%, expectations for recovery remain tempered due to subdued domestic consumption.

  1. Further easing anticipated in light of economic challenges.
  2. Focus remains on balancing stability and growth.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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