China’s central bank said on Thursday that it was looking into creating more structural tools to support innovation, domestic consumption and exporters, as it strives to help the Chinese economy ride out a period of heightened global uncertainty.
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Pan Gongsheng, governor of the People’s Bank of China (PBOC), also reiterated pledges to cut interest rates and the reserve requirement ratio (RRR) for commercial banks to boost economic growth during the meeting.
Meanwhile, the bank will keep the yuan stable and manage financial risks amid the pressure being exerted by external tariffs, Pan added.
“We will utilise a range of monetary policy tools, including open market operations, to ensure ample liquidity and align money supply and social financing growth with economic and inflation targets,” he said.
Pan did not elaborate on the new tools the PBOC may introduce, but the bank has turned to relending tools to support various sectors of China’s economy in recent years.
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Just last week, the PBOC announced plans to double the size of its relending tool to support the technology sector to 1 trillion yuan (US$138 billion) during the “two sessions”, the annual meeting of China’s top legislative and consultative bodies.
The moves are in line with Beijing’s decision to shift China’s monetary policy from a “prudent” to a “moderately loose” stance for 2025, as policymakers focus on stimulating consumption.