China's central bank seeks additional steps to stimulate demand in the country and build confidence
Kyiv • UNN
China's central bank promises to implement a prudent and effective monetary policy, as well as actively work to stimulate domestic demand and build confidence to drive economic recovery in the country.
On Wednesday, the Central Bank of China said it would implement a reasonable and effective monetary policy, pay more attention to counter-cyclical measures, and actively work to increase domestic demand and boost confidence, UNN reports citing Reuters.
Details
After the quarterly meeting of the monetary policy committee, the Central Bank of China announced its intention to support banks in replenishing capital and direct financial institutions to increase the issuance of medium- and long-term loans to the manufacturing industry.
Economic data for January-February, as well as a survey of factory owners in March, indicate a positive start for the Chinese economy, which opens up opportunities for further relief measures by Chinese policymakers seeking to stimulate economic recovery after the lockdown period.
The Bank noted that economic activity in China continues to develop in a positive direction, but at the same time noted problems with inadequate effective demand and weak social expectations, and "will strengthen the implementation of the implemented monetary policy" and maintain sufficient liquidity.
According to the statement, the central bank will balance the "moderate growth" of prices and maintain them at a reasonable level, given the deflationary pressures in the economy. The bank also emphasized the need for large banks to fulfill their role in providing financial services to the real economy.
Recall
China aims to become a powerful driver of the global economic recovery this year by opening its markets more to foreign investors, promoting technological innovation, and ensuring high-quality growth.
