China's central bank pledged to step up counter-cyclical adjustments, expand domestic demand and optimise supply. The People's Bank of China (PBOC) also said it will keep an appropriately loose stance and hold the yuan basically stable.
The PBOC vowed to step up counter-cyclical adjustments, expand domestic demand and optimise supply, aiming to achieve the annual economic development goals amid domestic and external headwinds. The pledge appears in its third-quarter monetary policy implementation report, released on Wednesday.
The report points to a mismatch between strong supply and weak demand. The PBOC also cited structural imbalances and external shocks, and said the external environment has become increasingly complex and volatile.
Against that backdrop, the bank said it would continue to implement an appropriately loose monetary policy to create a favourable monetary and financial environment for stable economic growth. It reiterated its pledge to adjust policy tools in a timely manner.
The central bank said it would maintain low overall borrowing costs and keep the yuan exchange rate basically stable at a reasonable and balanced level. It will also strengthen financial support for key areas, including domestic demand, scientific and technological innovation and infrastructure projects.
Finally, the PBOC vowed to enrich its policy toolkit and safeguard the stable operations of the stock, bond and foreign exchange markets.
Source: Reuters via Investing.com
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