PBC to maintain prudent and flexible monetary policy to soften coronavirus impacts

Source:Global Times Published: 2020/2/24 13:27:54

A view of the PBC’s headquarters in Beijing Photo: cnsphoto

People's Bank of China (PBC) said its prudent monetary policy will be more flexible to ensure liquidity. It will also make use of the inclusive monetary policy tools and adjust policies relating to requirement reserve ratio cut, according to Chen Yulu, deputy governor of PBC said. 

According to Chen, there is enough room in China for monetary policies and tools. PBC will strengthen their support to three policy lenders, including China Development Bank, the Export-Import Bank of China and the Agriculture Development Bank of China. 

The support for the three policy lenders will enable more targeted loans to small to medium enterprises (SMEs) in manufacturing, foreign trade and in agriculture, especially in the spring ploughing period and for hog farmers, Chen said. 

In early February, the PBC issued a total of 300 billion yuan ($42.67 billion) of bank loans targeting the coronavirus-hit companies. So far there have been almost a thousand companies that have received the loans to buffer the impact of the coronavirus. Chen said the PBC will continue to ensure the policy is passed down to the ground level. 

Global Times

Posted in: ECONOMY

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