The central bank of China said on Thursday it would step up macroeconomic policy adjustments to support the economy and promote a rebound in pricesamid signs of growing deflationary pressures.
The People’s Bank of China (PBOC) will maintain reasonably ample liquidity and guide reasonable credit growth, it added in a statement after a quarterly meeting of its monetary policy committee.
“The current external environment is becoming more complex and severe”the central bank said. “The international economy, trade and investment are slowing, inflation is falling from high levels and interest rates in developed countries remain high.”
China’s economy is recovering, but still faces challenges such as insufficient effective demand and weak social expectations, he said.
The central bank “will intensify macroeconomic policy adjustments and continuously consolidate the foundations of stability and improvement,” he said, adding that “will promote a recovery of prices from low levels and keep them at a reasonable level.”
Top Chinese leaders, at a key meeting this month to chart the economic course for 2024, pledged to implement a monetary policy that will be “flexible, moderate, precise and effective.”
Top leaders also said next year’s growth in total social financing – a measure of broad credit – and supply monetary would coincide with the expected goals on economic growth and inflation.
China’s consumer prices fell in November at the fastest pace in three years, while factory-level deflation deepened, signaling growing deflationary pressures as weak domestic demand casts doubt on economic recovery.
In recent months, the government has announced a series of measures to shore up China’s weak post-pandemic economic recovery, which is being held back by a slump in the real estate sector, local government debt risks and sluggish global growth.
It is considered that the economic growth of China is on track to hit the official target of around 5% this year and Beijing is expected to maintain the target for next year.
China will promote the stable and healthy development of the real estate market, meeting the reasonable financial needs of real estate enterprises of various forms of ownership, the central bank said.
It will also boost financial support for key companies and groups to stabilize and expand jobs, and drive and stimulate greater private investment, the agency added.
China will ensure the stability of the currency, the yuan, and resolutely guard against the risk of the exchange rate overshooting, he said.
(Source: Reuters)
Source: Gestion
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