Under scrutiny: A man rides a bicycle past the PBoC headquarters in Beijing. The central bank’s independence is likely to be further hampered by President Xi’s consolidation of personal power. — Bloomberg
BEIJING: China’s central bank will step up credit support for the real economy while keeping the yuan basically steady, governor Yi Gang has said in comments published yesterday, reaffirming the bank’s existing policy objectives.
“We will keep liquidity reasonably ample, increase credit support to the real economy,” Yi was quoted by a central bank statement as saying during a parliament session on Friday.
“Going forward, China has the conditions to maintain a normal monetary policy as long as possible and maintain the stability of the currency’s value.”
China’s economy rebounded at a faster-than-anticipated clip in the third quarter but a more robust revival in the longer term will be challenged by persistent Covid- 19-related curbs, a prolonged property slump and global recession risks.
The central bank will keep the yuan basically stable while enhancing its flexibility, Yi said.
The central bank will make 200 billion yuan (US$27.6bil or RM130.3bil) in special loans to ensure the delivery of stalled housing projects, Yi said. The scheme was announced by authorities in August but they did not give specifics.
China will properly resolve financial risks in the real estate sector and guide financial institutions to meet property developers’ demand for financing, within reason, Yi said. — Reuters
