China's inflation, currency to remain stable in 2023: PBOC
Updated 19:39, 03-Mar-2023

China's interest rates will remain within an appropriate range, inflation will remain under control and the exchange rate of the currency will stay stable, according to the People's Bank of China (PBOC) on Friday.

The monetary policy will remain stable this year, China's central bank governor Yi Gang said in a news conference addressing monetary policy on Friday.

Yi said cuts to the reserve requirement ratio is still an effective way for the PBOC to provide long-term liquidity. Price stability is the basis of a stable currency, he said.

Meanwhile, PBOC deputy governor Liu Guoqiang said the central bank will adjust monetary policy at the appropriate time. Inflation is also expected to stay mild in 2023 and "the overall inflation pressure is manageable," he added.

Commenting on the property market, deputy governor Pan Gongsheng said China will promote a new development model in the property sector. He said fears of a bubble within China's housing industry has been curbed thanks to measures to support the industry.

Pan said China will push forward the transformation of the property sector and continue to uphold the principle that housing is for living in, not for speculation.

The increase in household deposits is due to reduced consumption during the COVID-19 pandemic and low risk appetite in making investments, Liu said. As the economy improves, confidence in consumption and investment is expected to rebound.

(Cover image via CFP)

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