PBOC outlines strategy for COVID-19

CHINA’S central bank said yesterday it will step up counter-cyclical adjustment to support the real economy and fend off financial risks.

The People’s Bank of China said in its first-quarter monetary policy report that restoring development of the real economy will be a focus, especially small business, adding it will use both quantitative and structural policies to keep liquidity at a reasonable and ample level, and support the real economy.

The central bank vowed to seek a dynamic balance among multiple policy tasks, prioritizing economic growth and employment. It will implement stronger policies to counter the impact of the coronavirus pandemic and create a favorable financial environment for epidemic prevention and control as well as restoring development of the real economy.

Continuous spread of the COVID-19 pandemic around the world is dragging the global economy into recession, it said, adding the duration and adverse impact of the pandemic may be worse than expected.

The central bank said that despite growing challenges and uncertainties, the trend for China’s long-term stable and sound development remains unchanged.

It will make the prudent monetary policy more flexible and appropriate, continue to deepen market-oriented interest rate and foreign currency reform, and maintain two-way flexibility of the yuan.

The central bank reiterated that the property sector will not be used as a means of shortterm stimulus, and vowed to maintain efforts to ward off systemic financial risks.

(Xinhua)