PBOC head vows to boost China countercyclical monetary measures

CHINA’S central bank chief pledged to maintain an accommodative monetary policy stance and to double down on countercyclical adjustments to support the country’s economic growth.

In a report on the nation’s financial work to China’s top legislative body, the National People’s Congress (NPC) Standing Committee, People’s Bank of China (PBOC) governor Pan Gongsheng on Tuesday (Nov 5) suggested that keeping an accommodative monetary policy stance and increasing the intensity of countercyclical adjustments will create a sound monetary and financial environment for stable economic growth and high-quality development, the official Xinhua News Agency reported.

Pan also underscored the need to actively prevent and tackle financial-system risks by strengthening regulatory oversight, the report added.

The PBOC chief’s comments amid a highly anticipated session of the NPC Standing Committee in Beijing this week. Investors are closely watching the gathering for signs of new stimulus to revive the world’s second-largest economy. The legislative body met on Monday to discuss a plan to lift local governments’ debt ceiling to swap out their hidden debt. That decision is intended to reduce the financial burden of local officials.

Earlier on Tuesday, Chinese Premier Li Qiang expressed confidence in the government’s ability to drive sustained economic improvement and reach its 5 per cent growth target for 2024, as officials had “ample space for fiscal policy and monetary policy”. His upbeat remarks came after the country’s service-sector activity expanded at the fastest pace since July, a sign that consumer demand may be on the mend after Beijing moved to shore up growth with a barrage of stimulus measures. BLOOMBERG