PBOC to strengthen monetary policy support for economy, governor says

Michelle K. Wallace

FILE PHOTO: Headquarters of the People’s Bank of China (PBOC), the central bank, is pictured in Beijing, China September 28, 2018. REUTERS/Jason Lee

HONG KONG (Reuters) – China will strengthen monetary policy support for the economy as authorities fight the hit from the coronavirus pandemic, its central bank governor wrote in an article published on Saturday.

The central bank will put more emphasis on policy flexibility while maintaining financial market stability, People’s Bank of China Governor Yi Gang wrote in an article published in the Communist Party journal Qiushi.

The coronavirus hit China’s economy as it was in a downward cycle, which impacted financial operations, Yi said. While China has contained the coronavirus, its spread overseas brings new challenges, he added.

The PBOC will use policies such as relending, rediscount, deferred loan repayments and improved policy transmission to support the economy and stabilise employment, Yi said.

The central bank has rolled out a raft of easing steps since early February, including cuts in reserve requirements and lending rates and targeted lending support for virus-hit firms.

Reporting by Pei Li and Kevin Yao; Editing by Sam Holmes

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