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The Central Bank Of China Guarantees Support For Domestic Demand
On Monday, China's central bank announced that it would employ forceful and targeted monetary policy to better support domestic demand and ward off systemic risks to the economy.
The bank stipulated in its quarterly policy implementation report that it would employ a variety of monetary instruments at its disposal to guarantee adequate liquidity and outline the general direction of financial policy.
"Prudent monetary policy should be precise and forceful, with greater emphasis on cross-cyclical and countercyclical adjustments, enriching the monetary policy toolbox," the financial institution stated.
The bank additionally stated its intention to "further unblock the monetary policy transmission mechanism," bolster the stability of real economy financial support, and maintain "reasonably stable" prices.
The central bank stated that while China's economy is experiencing a surge in growth, it encounters obstacles including an unbalanced global economic recovery and an unstable groundwork for domestic economic recovery.
In an effort to bolster a feeble post-pandemic recovery amidst a persistent property sector decline, local government debt risks, sluggish global growth, and geopolitical tensions, Beijing has implemented a multitude of policy measures this year.
The bank stated that it would advise financial institutions on how to mitigate local debt risks and emphasised the critical need for a more rapid economic transformation.
"The dynamics of supply and demand in the real estate market have changed significantly," the central bank stated.
The bank stated that it would endeavour to promote a sound monetary and financial environment and maintain the yuan's "basically stable" status, despite the currency's recent difficulties on the foreign exchange market.
It reaffirmed that it anticipates a growth rate of approximately 5% this year.
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