UPDATE 1-China’s central bank to accelerate policy implementation to boost growth

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BEIJING, June 29 (Reuters) – China’s central bank said on Wednesday it would step up the implementation of prudent monetary policy and maintain reasonably ample liquidity, in a bid to support a slowing economy.

The People’s Bank of China (PBOC), in a statement after the conclusion of a quarterly meeting of its monetary policy committee, promised to use comprehensive and structural policy tools to bolster confidence in the economy.

“At present, global economic growth is slowing down, inflation is at a high level, geopolitical conflicts continue, and the external environment is becoming more complex and severe,” the PBOC said.

“Economic development faces a triple pressure of contracting demand, supply shock and weakened expectations.”

Favorable conditions in China, characterized by stable and increased grain production and a stable energy market, will help keep domestic inflation essentially stable, the central bank said.

China’s economy has recovered to some extent, but its foundations are not solid, state media said on Tuesday quoting Premier Li Keqiang.

Central bank governor Yi Gang said earlier this week that China’s monetary policy would continue to be accommodative to support the recovery.

The PBOC will improve the market-based interest rate regime, help reduce overall financing costs for businesses and help banks rebuild their capital, it said in the statement.

The central bank also reaffirmed its position to make the yuan’s exchange rate more flexible and keep the yuan fundamentally stable. (Reporting by Kevin Yao and Beijing Newsroom; Editing by Andrew Heavens and Alison Williams)

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