China’s central bank said Wednesday that it would step up policy support for the Chinese economy, which it said faces severe external challenges and weakening domestic demand.
The People’s Bank of China said it would make monetary policy “precise and forceful” in order to expand demand and boost confidence, according to a statement released after the central bank’s third-quarter monetary policy meeting held Monday.
The PBOC repeated its pledge to keep liquidity reasonably ample and maintain stable credit expansion for the economy. Earlier this month, the central bank lowered banks’ reserve requirement ratio to release more liquidity into the financial system.
The central bank also said it would guide banks to lower financing costs for companies and households, while supporting lenders to replenish capital. The PBOC said it would ramp up efforts to support private investment while lifting consumer prices and stabilizing inflation.
It also reiterated that it aimed to keep the yuan stable and ward off risks of currency overshooting.
Further, the central bank said it would implement policy support, including measures to lower down payments and mortgage rates for home buyers, as part of Beijing’s push to support the slumping property market.
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