China's central bank has pledged to take a more targeted approach toward prudent monetary policy – that is precise and powerful – this year to support the real economy, in a statement released Friday after the latest quarterly meeting of its monetary policy committee.

Global economic growth is slowing, with persistently high inflation, intensifying geopolitical conflicts and the increasingly volatile international financial market, said the People's Bank of China (PBOC). 

While the Chinese economy is rebounding, the foundation for its recovery is not yet solid, noted the central bank.

The PBOC said it will focus on stabilizing growth, employment and prices, and expanding domestic demand, vowing to keep loan growth at a reasonable and stable level and ensure that increases in the money supply and aggregate financing are generally in step with nominal economic growth.

Policy-backed and development-oriented financial instruments will be used to support infrastructure development, while monetary tools will be leveraged to enhance support for key sectors and weak links of the economy, such as inclusive finance, green development and science and tech innovation, it said.

China will work on building mechanisms that will enable the financial sector to effectively support the real economy, said the central bank. This will guide financial institutions to issue more medium- and long-term loans to the manufacturing sector and ensure that the financial sector's support for private enterprises is commensurate with their contributions to the country's economic and social development.

The PBOC also pledged to effectively prevent and defuse the risks of high-quality and industry-leading housing developers, and implement city-specific policies to meet the demand of first-time home buyers or those looking to improve their housing situation.

(With input from Xinhua)