China's central bank to ramp up prudent monetary policy implementation, support real economy
Published: Aug 10, 2022 11:43 PM
The building of the People's Bank of China in Beijing Photo: VCG
The building of the People's Bank of China in Beijing Photo: VCG

The People's Bank of China (PBC), the country's central bank, vowed on Wednesday to ramp up the implementation of prudent monetary policy and not to over-issue money, in a bid to balance economic growth and price stability while providing stronger support for the real economy.

In its latest quarterly monetary policy report, the PBC said that China's Consumer Price Index (CPI) will probably remain in a reasonable range, and may attain its 3 percent annual target. The central bank will ensure favorable conditions for stable crop output and steady energy market operations, and it will follow domestic and overseas inflation trends and deal with them appropriately.

The bank said it will continue to maintain reasonable and sufficient liquidity in order to provide support for the real economy and infrastructure construction, while providing reasonable increases in money supply and aggregate social financing to strive for the best results in full-year economic growth.

The PBC stressed that it will not use real estate for short-term economic stimulation, and will make every effort to stabilize land and housing prices as well as promoting the healthy development of the property market.

In addition, it stressed the importance of improving the system for financial risk prevention and building a long-term mechanism for resolving financial risks. The PBC will further deepen early correction and risk disposal functions of the deposit insurance system, and will resolutely guard the bottom line of avoiding systemic financial risks.

According to the report, the PBC, together with other financial management departments, will further simplify the procedures for foreign investors to enter and invest in the Chinese market, enrich the types of assets available for investment, improve data disclosure, and continuously improve the business environment, in a bid to create a more convenient environment for foreign investors and international institutions entering the Chinese market.