China’s central bank will continue an appropriately accommodative monetary policy to support economic growth, strengthen co-ordination with fiscal policy, and improve interest rate transmission.
It also pledged to stabilise the RMB, lower financing costs, monitor bond markets, and support domestic demand, innovation and small and medium-sized enterprises.
The PBOC said it will better utilise monetary policy tools in both aggregate and structural terms, strengthen the guiding role of policy interest rates, and further improve the market-based interest rate formation and transmission mechanism.
The committee also called for regulating credit market activities, reducing intermediary financing costs, and maintaining overall social financing costs at a low level. It stressed the need to closely monitor the bond market from a macro-prudential perspective, particularly long-term bond yields, while improving monetary policy transmission and the efficiency of fund utilisation.
The central bank also pledged to enhance the resilience of the foreign exchange market, keep the renminbi exchange rate generally stable at an adaptive and balanced level, and increase financial support for expanding domestic demand, technological innovation, and micro, small and medium-sized enterprises (MSME), while continuing to improve financial services for the private sector.
Fibre2Fashion News Desk (CG)
