The People’s Bank of China has emphasized the importance of a prudent monetary policy in supporting the continued recovery of the economy. The Monetary Policy Division has outlined key measures taken to strengthen the economy amidst new challenges and uncertainties.
One significant aspect of the monetary policy strategy has been the countercyclical adjustment, which has been significantly strengthened. Measures such as reserve requirement ratio cuts, medium-term lending facilities, and other tools have been utilized to maintain sufficient liquidity in the financial system. Additionally, policy interest rates have been cut to drive down financing costs and stimulate domestic demand.
Furthermore, funds have been optimized to support key areas such as agriculture, small businesses, technology-based enterprises, and affordable housing. The People’s Bank of China has also focused on maintaining a stable exchange rate to balance internal and external conditions.
The quality and efficiency of financial support for the real economy have continued to improve, with steady growth in money and credit, low loan interest rates, and an optimized credit structure. The exchange rate has remained basically stable, further contributing to economic stability.
Moving forward, the People’s Bank of China aims to maintain flexibility, precision, and effectiveness in their monetary policy approach. The focus will be on maintaining reasonable growth in financing, money, and credit, promoting a steady decline in social financing costs, and completing the “five major articles” on finance. Coordination with fiscal and industrial policies will also be strengthened to support the positive economic recovery trend.
Overall, the prudent monetary policy implemented by the People’s Bank of China is proving to be precise and powerful in supporting the economy’s continued recovery and growth. (Source: People’s Bank of China)