Published on: September 27, 2023
The People’s Bank of China (PBOC) has announced its commitment to bolster the oversight of the macroeconomic landscape in a bid to boost domestic demand and provide robust support for the tangible economy. This move comes as China’s economic resurgence continues to gain momentum, despite facing challenges such as weak demand.
Following the third-quarter assembly of the PBOC’s monetary policy committee, the central bank emphasized its dedication to sustaining support for the nation’s economic recovery. It aims to harness the increasing economic vigor by enhancing the effectiveness of macro-economic regulation, implementing precise monetary policies, and making necessary counter-cyclical and cross-cyclical adjustments.
The PBOC has pledged to increase support for pivotal industries and address weak links within the national economy. This comprehensive approach includes focusing on inclusive finance, eco-friendly development, technological innovation, and infrastructure development. The ultimate goal is to reduce corporate financing costs and household loan expenditures, thereby stimulating economic activity.
In the realm of foreign exchange, China’s central bank has affirmed its commitment to rectifying one-sided and pro-cyclical behaviors. Additionally, it will remain vigilant against the risk of exchange rate overshooting and work to maintain the yuan exchange rate at reasonably stable and balanced levels.
This announcement from the PBOC reflects China’s determination to navigate economic challenges effectively while capitalizing on its growing economic strength. By addressing issues like weak demand and ensuring prudent financial policies, the central bank seeks to sustain and further solidify the nation’s economic recovery.
China’s proactive stance in strengthening economic oversight and support for indigenous demand is a significant step towards ensuring long-term economic stability. In a global context marked by economic uncertainties, China’s commitment to precise monetary policies and support for key industries demonstrates its resilience and determination to maintain economic growth. By also addressing issues related to foreign exchange, the PBOC is sending a clear message that it intends to manage economic challenges proactively. These measures should not only bolster China’s domestic economy but also contribute positively to global economic stability.
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