Beijing, 25 February 2023 (TDI): China’s Central Bank pledged to implement a prudent and sustainable monetary policy that supports the country’s real economy.
In its latest monetary policy report, the People’s Bank of China (PBOC) emphasized its focus on expanding domestic demand while avoiding the risk of flood irrigation.
To drive economic growth, the People’s Bank of China (PBOC) aims to encourage financial institutions to enhance their services in areas such as inclusive finance, scientific and technological innovation, and green development.
It also planned to reduce the financing costs for enterprises and individual consumption, thereby promoting investment and consumption to unleash the full potential of the economy.
According to Xuan Changneng, the Vice Governor of the People’s Bank of China, the monetary policy aims not only to coordinate domestic demand but also to balance supply-side structural reforms.
The People’s Bank of China (PBOC) will remain vigilant to inflation trends and ensure supply and price stability while promoting moderate, balanced growth.
Overall, the central bank’s measures aim to increase market confidence and rejuvenate economic entities. This will lead China to a sustained economic recovery as China’s COVID-19 prevention and control measures have improved.
Understanding the Objectives of Monetary Policy
China aims to promote the bulk consumption of automobiles and housing, as well as services in education, culture, and sports through its monetary tools.
The Central Bank plans to extend the special re-lending facility for the transport and logistics sector to ensure smooth transportation and logistics by the end of June this year.
Furthermore, China pledges to support scientific innovation, technological growth, and inclusive finance to revitalize market players’ vitality gradually.
This reasonable and moderate policy will emphasize balanced, stable growth and prices, enhancing China’s economic confidence and vitality.
By implementing these measures, China seeks to unlock the full potential of its economy, boosting market confidence and revitalizing its entities.