BEIJING: China will make its monetary policy flexible, targeted and appropriate, while keeping interbank liquidity reasonable, the central bank said on Monday, as authorities seek to consolidate a post-Covid-19 economic recovery.
China's economy has staged a strong rebound from the impact of the Covid-19 pandemic, with Chinese exporters racing ahead to fill global demand bolstering the vast industry sector, but the recovery in the consumer end has been weak.
The People's Bank of China (PBOC), in a statement on its website after a quarterly meeting of the monetary policy committee was concluded, flagged a still-complicated internal and external environment facing the Chinese economy.
It would step up forecasts and analyses of both the domestic and global economy, seek greater international economic policy coordination and fend off external shocks to support growth.
A recent move to reform the way banks calculate deposit rates and continued efforts to unleash potential from previous loan prime rate reforms will help drive a further decline in real lending rates, the PBOC said.
Authorities will make use of relending, re-discounting and other monetary tools that would directly help the real economy, said the PBOC.
China will increase flexibility of the yuan exchange rate, PBOC reiterated, although that the currency would be kept stable within a reasonable and balanced range.
In another development, Fitch Ratings on Monday affirmed China’s ratings at “A+” with a stable outlook, saying the country’s economy has entered a mature stage in its Covid-19 pandemic recovery.
The rating agency forecast China's gross domestic product growth at 8.4% in 2021 and 5.5% in 2022, according to the report.
On Friday, S&P Global Ratings also affirmed the country's ratings, saying China was likely to maintain above-average economic growth relative to other middle-income economies in the next few years. – Reuters
The People's Bank of China flagged a still-complicated internal and external environment facing the Chinese economy. – REUTERSPIX
Source: The Sun Daily
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