HKEJ Breaking News - China Finance - PBOC continues to implement a moderately loose policy to promote steady economic growth - HKEJ website hkej.com

The People's Bank of China's Monetary Policy Committee recently held its Q2 regular meeting, stating that it will continue to implement a moderately accommodative monetary policy, step up counter-cyclical and cross-cyclical adjustments, better leverage the dual functions of monetary policy tools in both aggregate and structural aspects, strengthen coordination between monetary and fiscal policies, and promote stable economic growth and a reasonable recovery in prices.

According to a press release published on the PBOC's official website, the committee said it will observe and assess the bond market's operation from a macro-prudential perspective and pay attention to changes in long-term bond yields; enhance the resilience of the foreign exchange market, stabilize market expectations, and keep the Renminbi exchange rate basically stable at a reasonable and balanced level.

The press release emphasized that it recommends leveraging the synergistic effect of incremental and existing policies, and enhancing the forward-looking, flexible, and targeted nature of policies.

At the same time, it will maintain ample liquidity, ensuring that the growth of aggregate social financing and money supply matches the expected targets for economic growth and the overall price level; strengthen guidance from the central bank's policy rate, improve the formation and transmission mechanism of market-based interest rates, and leverage the role of the market interest rate pricing self-discipline mechanism.

In addition, it will make good use of various structural monetary policy tools, optimize tool management, and strengthen financial support for key areas such as expanding domestic demand, technological innovation, and small and micro enterprises.