Boosting Confidence: China's Expansive Monetary Measures
China's central bank has urged financial institutions to implement expansive measures to bolster the economy and capital markets. This includes increasing credit support and adjusting interest rates. The PBOC's actions aim to meet a 5% growth target amidst a property downturn and weak consumption.
China's central bank, the People's Bank of China (PBOC), alongside financial regulators, has urged financial institutions to rapidly adopt extensive policies aimed at fortifying the economy and capital markets.
In a statement released on Friday, the PBOC called for enhanced credit support for the real economy and advocated for steady growth in money and credit. The bank also emphasized the need for effective interest rate adjustments and the deployment of novel funding schemes tailored to aid the stock market.
The initiatives, introduced in September, are the most robust since the onset of the COVID-19 pandemic, encompassing interest rate cuts and a significant liquidity injection of 1 trillion yuan. These measures aim to counteract a prolonged property market slump and sluggish consumer activity, and are pivotal to achieving China's 5% growth target this year.
(With inputs from agencies.)
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