BEIJING- China’s central bank said on Friday it will ensure reasonably ample liquidity and credit expansion to consolidate the country’s economic recovery, which still faces many challenges.
The People’s Bank of China (PBOC) said it will make its monetary policy flexible, precise and effective and promote a moderate recovery in consumer prices, writing in its quarterly monetary policy implementation report.
“We will maintain the stability of monetary policy, enhance the consistency of macroeconomic policy orientation, strengthen counter-cyclical and cross-cyclical adjustments, increase support for the real economy, and effectively consolidate and enhance the positive trend of economic recovery,” it said.
“The global economic recovery momentum is divided, and uncertainties such as monetary policy adjustments and geopolitical conflicts in developed economies still exist. The sustained recovery of the domestic economy still faces many challenges.”
China’s economy grew 5.3 percent in the first quarter, faster than expected. But key March indicators showed that demand at home remains frail, weighing on overall momentum
China has set an economic growth target for 2024 of around 5 percent , which many analysts say will be a challenge to achieve as a sagging property market and tepid consumer demand weigh on the economy.
The Communist Party’s top decision-making body last month pledged to step up support for the economy with prudent monetary policy and proactive fiscal policies, including through interest rates and bank reserve requirement ratios.
