China’s central bank says it will better implement monetary policy

CHINA’S central bank will better implement its prudent monetary policy and create a sound environment for supporting economic growth and employment, deputy central bank governor Pan Gongsheng said on Thursday (Oct 20).

The People’s Bank of China has been trying to bolster growth while avoiding aggressive loosening that could fan price pressures and risk outflows, as the Federal Reserve and other central banks raise interest rates to fight soaring inflation.

“We will better implement the prudent monetary policy, strengthen cross-cyclical and counter-cyclical adjustments,” Pan told reporters during a Communist Party Congress which takes place every five years.

“We will create a sound monetary and financial environment for promoting economic growth, stabilising employment, prices and international balance of payments.”

The world’s second largest economy has gained some steam in recent months after narrowly escaping a contraction in the second quarter, but the recovery remains shallow as Covid flare-ups and a deepening property slump weighs on the outlook. China will keep the yuan exchange rate basically stable and step up efforts to resolve financial risks, Pan said. REUTERS