China’s Central Bank Pledges to Ease Policy to Boost Growth

China’s central bank pledged to expand monetary policies to boost economic growth and maintain total credit stability as it signals a more accommodative policy stance in the following months.

The People’s Bank of China (PBOC) will “open the monetary policy tool box wider, maintain stable overall money supply and avoid a collapse in credit,” Deputy Governor Liu Guoqiang said at a press briefing on Tuesday.

Liu said that the central bank will roll out more policies to address common concerns of a “downward pressure” on China’s markets, which analysts speculate is directed on the current financial distress of the real estate sector.

The comments came a day after the PBOC cut its key interest rate for the first time in almost two years to help curb the economic impacts of a property slump and COVID-19 outbreaks.

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