BEIJING听–听颁丑颈苍补’蝉听肠别苍迟谤补濒听产补苍办听said on Wednesday it would step up听辫辞濒颈肠测听adjustments and implement monetary听辫辞濒颈肠测听in a “precise and forceful” manner to support聽an economy whose聽谤别肠辞惫别谤测听was improving with “increasing momentum”.
The People’s听叠补苍办听of China聽(PBOC)聽will keep liquidity reasonably ample and maintain stable credit expansion, the聽产补苍办听said in a statement after a quarterly meeting of its monetary听辫辞濒颈肠测听committee.
“The current external environment is becoming more complex and severe, international economic trade and investment are slowing down, inflation is still high, and interest rates in developed countries remain high,” the聽肠别苍迟谤补濒听产补苍办听said.
“The domestic economy continues to recover and improve, with increasing momentum, but it still faces challenges such as insufficient demand.”
“We need to continue to work hard and take advantage of the improving momentum, step up macro听辫辞濒颈肠测听adjustments, implement the prudent monetary听辫辞濒颈肠测听in a precise and forceful manner,” the PBOC said.
The wording in the latest comments was consistent with the line taken earlier by the聽肠别苍迟谤补濒听bank, though the remarks on the economy appeared slightly more positive as the PBOC had said in its April statement that the聽谤别肠辞惫别谤测听lacked solid foundations.
The world’s second-largest economy is showing some signs of stabilizing after a flurry of modest听辫辞濒颈肠测听measures, but the outlook is clouded by a property downturn, aging demographics, high debt and geopolitical tensions.
The聽肠别苍迟谤补濒听产补苍办听will guide听产补苍办s to lower borrowing costs for companies and households and support听产补苍办s to replenish capital, it said.
China will step up government investment and听辫辞濒颈肠测听incentives to spur private investment and promote a聽谤别肠辞惫别谤测听in prices from a low level, the聽肠别苍迟谤补濒听产补苍办听said.
The PBOC reaffirmed its stance of keeping the yuan聽CNY=CFXS聽stable and preventing the risk of currency overshooting.
The聽肠别苍迟谤补濒听产补苍办听also pledged to promote the healthy and stable development of the property market, implementing聽聽to lower down payment ratios and mortgages rates for some home buyers.
The聽肠别苍迟谤补濒听产补苍办听will step up its support for the building of public聽聽for both normal and emergency听耻蝉别听in megacities, the transformation of ““, or underdeveloped areas, and affordable housing, it said.
The cabinet has announced guidelines to boost investment in such areas as part of efforts to support the economy. – Reuters
