China’s central bank to maintain supportive monetary policy, says governor Pan Gongsheng

China’s central bank governor, Pan Gongsheng, reaffirmed the institution’s commitment to a supportive monetary policy. Speaking in a state media interview, Pan emphasized the need for counter-cyclical and cross-cyclical adjustments to stabilize economic expectations and boost market confidence amid global uncertainties.

China’s central bank will maintain its supportive monetary policy as part of efforts to bolster the nation’s economy, according to the bank’s governor, Pan Gongsheng. In an interview with state media on Saturday, Pan emphasized that the People’s Bank of China (PBOC) will continue to strengthen both counter-cyclical and cross-cyclical adjustments. These measures are designed to stabilize economic expectations and boost market confidence amid ongoing global economic uncertainties.

The announcement aligns with the Chinese government’s broader strategy to stimulate economic growth and ensure financial stability. The PBOC has been taking a proactive stance in response to challenges such as slowing domestic growth and external pressures, including trade tensions and global economic shifts. The central bank’s commitment to a supportive monetary policy is expected to involve measures like interest rate adjustments, liquidity injections, and targeted financial support for key sectors.

Pan Gongsheng highlighted the importance of these policies in ensuring that China’s economic recovery remains on track. He noted that the PBOC would carefully monitor economic indicators and adjust its policies as needed to maintain stability. This approach aims to create a more favorable environment for businesses and consumers, helping to drive sustained economic growth.

China has recently encountered a range of economic difficulties, including a sluggish property market, falling exports, and softening consumer demand. The central bank’s supportive policies are seen as crucial in addressing these issues and preventing a further slowdown in the world’s second-largest economy.

The PBOC’s strategy also includes efforts to manage inflation, support small and medium-sized enterprises, and promote financial reforms. By maintaining a balanced and supportive monetary policy, the central bank aims to foster long-term economic stability and growth, even as global economic conditions remain uncertain.