In response to downward pressures due to the COVID-19 and external shocks, China's central bank will step up the implementation of the sound monetary policy to enhance support for the real economy, said Yi Gang, the governor of People's Bank of China (PBOC), at the 3rd G20 Finance Ministers and Central Bank Governors Meeting on Saturday.

Governor Yi provided an update on China's economic and financial developments at the meeting, noting that inflation in China is moderate and expected to be stable.

The PBOC will advance the development of the transition finance framework and promote the joint implementation of the G20 Sustainable Finance Roadmap, enabling the financial sector to better support carbon emission peak and carbon neutrality objectives, Yi said.

The meeting, under the Indonesian Presidency, was held in Bali on July 15 and 16, 2022 in a hybrid mode. It discussed global economy, global health agenda, international financial architecture, sustainable finance, financial sector issues, infrastructure investment and international taxation. Governor Yi and deputy governor Chen Yulu participated via video link.

The overall assessment from ministers and governors was that the global economic recovery and financial stability face multiple challenges. They include the elevated risks from COVID-19, inflationary pressures, geopolitical developments, food and energy supply tensions, and volatility in cross-border capital flows.

It is important to support the role of the G20 as the premier forum for international economic cooperation by upholding multilateralism and strengthening policy coordination. This is to maintain price stability and avoid negative spillovers; and collective efforts to deploy supportive policy measures in a flexible and targeted manner are essential to address the challenges.

The ministers and governors reaffirmed the importance of transition finance and their support for low-income countries in responding to the economic shocks. Meeting participants also agreed on the need to reinforce global financial system's resilience.