711bet China’s central bank vows ‘moderately loose’ monetary policy
A woman walks past the headquarters of the People’s Bank of China, the country’s central bank, in Beijing on July 9, 2024. (Photo by ADEK BERRY / AFP)
Beijing, China — China’s central bank has outlined a “moderately loose” monetary plan aimed at boosting domestic demand to spur growth, days after President Xi Jinping called for more proactive macroeconomic policies.
Beijing last year struggled to lift the economy out of a slump fuelled by a property market crisis, weak consumption and soaring government debt.
Article continues after this advertisementOfficials have unveiled measures aimed at bolstering growth, including cutting interest rates and easing homebuying restrictions, but economists have warned more direct stimulus may still be needed.
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The People’s Bank of China (PBoC) said in a statement it will “implement a moderately loose monetary policy… to create a good monetary and financial environment for promoting sustained economic recovery”.
Article continues after this advertisementThe statement released Saturday reiterated plans to cut interest rates and the reserve requirement ratio which dictates how much banks must hold in their coffers, rather than lending or investing.
Article continues after this advertisementIt said the changes would be made “at an appropriate time” depending on conditions at home and abroad.
Article continues after this advertisementThe PBoC emphasized the need to weed out corruption — signalling the continuation of a long-running crackdown in China’s finance industry.
Government debt in these countries, which are home to around 40 percent of the world’s population, now stands at an average of 72 percent of GDP – an 18-year high – the Washington-based development lender said.
It also said it would continue to help local governments resolve debt burdens with “financial support”.
Article continues after this advertisementThe measures are to “prevent and resolve financial risks in key areas, further deepen financial reform and high-level opening up, focus on expanding domestic demand, stabilizing expectations, and stimulating vitality,” the statement said.
The bank’s announcement came after officials convened for a two-day conference in the capital.
Beijing was aiming for growth of around five percent in 2024, a goal Xi has expressed confidence in achieving but which many economists believe will be narrowly missed.
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The International Monetary Fund expects China’s economy to have grown by 4.8 percent in 2024 and to grow 4.5 percent in 2025.711bet
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