Economy Jun 29

PBoC vows to step up coronavirus recovery efforts

New fiscal and monetary tools will be created as financial industry is further liberalised

PBoC vows to step up coronavirus recovery efforts
Driving seat: PBoC chief Yi Gang.

(ATF) China's central bank on Sunday vowed stronger macro-economic policy adjustments as well as better fiscal, monetary, and employment policies to counter the impact of coronavirus on economic growth.

Beijing will pursue a prudent monetary policy in a more flexible and appropriate way, the People's Bank of China (PBoC) said in a statement released after a quarterly meeting of its monetary policy committee. The real economy and sustainable development will be put front and centre in the effort, it said. 

The Chinese economy contracted for the first time in decades in the first quarter as the coronavirus lockdown shuttered industry and confined tens of millions to people to their homes. It’s prognosis is being hampered by similar declines across the globe.

The central bank said it will use a variety of monetary policy tools to maintain liquidity at a reasonable and sufficient level to keep the economy moving, according to the statement.

It will encourage financial institutions to enhance support for the real economy, especially small-and-micro companies, as well as private firms.

The country will further liberalise the financial sector, while improving its economic and financial management capabilities as well as those for risk prevention and control, the central bank said.

It also vowed to deepen interest rate reforms and maintain the basic stability of the yuan exchange rate within a reasonable and balanced range.