BEIJING (Reuters) – China’s central bank said on Friday it will step up implementation of its “prudent” monetary policy to support the economy hit by the COVID-19 pandemic by maintaining reasonably ample liquidity and credit growth.
The People’s Bank of China will keep money supply and total social financing growth basically in line with nominal economic growth, the central bank said in a statement after a quarterly meeting of its monetary policy committee.
Chinese leaders pledged to focus on stabilizing the economy in 2023 and step up monetary policy adjustments to cushion the impact of a spike in Covid-19 infections at a time when a weakening global economy is hurting exports.
“We will intensify the implementation of a prudent monetary policy, which will be precise and forceful,” the central bank said.
“We need to work hard to stabilize growth, employment and prices. We need to support the expansion of domestic demand and give stronger support to the real economy.”
The central bank will lower enterprise-wide financing costs and the cost of consumer credit, he said, adding that he would guide financial institutions to increase medium-to-long-term lending to the manufacturing sector.
The central bank will also increase the yuan’s flexibility while keeping the currency basically stable, he said.
(Reporting by Beijing newsroom and Kevin Yao)
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