China’s Central Bank announces “moderately loose” monetary strategy to boost growth
(MENAFN) China’s central bank has introduced a “moderately loose” monetary policy designed to stimulate domestic demand and promote economic growth, just days after President Xi Jinping called for more active macroeconomic measures.
Last year, Beijing struggled to revive the economy, which had been dampened by a property market crisis, sluggish consumer spending, and escalating government debt.
To boost growth, officials have implemented strategies such as cutting interest rates and relaxing homebuying restrictions. However, some economists have suggested that more direct stimulus may be necessary.
The People’s Bank of China (PBoC) stated in a release that it would "carry out a moderately loose monetary policy... to establish a favorable monetary and financial environment for sustaining economic recovery."
The statement, issued on Saturday, reiterated plans to reduce interest rates and adjust the reserve requirement ratio, which determines the amount of money banks must hold rather than lend or invest.
The PBoC noted that these measures would be introduced “at an appropriate time,” depending on both domestic and global conditions.
Additionally, the PBoC emphasized its commitment to tackling corruption, signaling that its ongoing crackdown on the finance sector would continue. It also pledged to assist local governments in managing their debt burdens through “financial support.”
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