China’s central bank to create ‘more tools’ to shore up economy
China's central bank, the People's Bank of China (PBOC), is exploring new "structural tools" to bolster innovation, domestic consumption, and exports, aiming to navigate economic challenges amid global uncertainty. PBOC Governor Pan Gongsheng reaffirmed the bank's commitment to lowering interest rates and the reserve requirement ratio (RRR) for commercial banks to stimulate economic growth. The bank also intends to maintain the yuan's stability and manage financial risks stemming from external tariff pressures.
The PBOC plans to utilize various monetary policy tools, including open market operations, to ensure sufficient liquidity and align money supply and social financing growth with economic and inflation objectives. While the specifics of the new "structural tools" remain unclear, the PBOC has increasingly relied on relending tools in recent years to support specific sectors of the Chinese economy. For example, the PBOC recently announced a plan to double its relending facility for the technology sector to 1 trillion yuan (US$138 billion).
via SCMP Full Text Feed
China's central bank, the People's Bank of China (PBOC), is exploring new "structural tools" to bolster innovation, domestic consumption, and exports, aiming to navigate economic challenges amid global uncertainty. PBOC Governor Pan Gongsheng reaffirmed the bank's commitment to lowering interest rates and the reserve requirement ratio (RRR) for commercial banks to stimulate economic growth. The bank also intends to maintain the yuan's stability and manage financial risks stemming from external tariff pressures.
The PBOC plans to utilize various monetary policy tools, including open market operations, to ensure sufficient liquidity and align money supply and social financing growth with economic and inflation objectives. While the specifics of the new "structural tools" remain unclear, the PBOC has increasingly relied on relending tools in recent years to support specific sectors of the Chinese economy. For example, the PBOC recently announced a plan to double its relending facility for the technology sector to 1 trillion yuan (US$138 billion).
via SCMP Full Text Feed
