China's central bank vows to bolster real economy

The People's Bank of China (PBOC), the country's central bank, has pledged to provide stronger support to the real economy and boost domestic demand with stepped up macro-economic regulation.

The PBOC will implement a prudent monetary policy and strengthen counter-cyclical and cross-cyclical adjustments, the central bank said in a statement released on Wednesday, after the third quarterly meeting of its monetary policy committee.

The external environment is becoming more complex and severe, with a slowdown in the world economy as well as international trade and investment, while global inflation remains high with interest rates in developed countries expected to remain elevated, said the PBOC.

While China's economy is rebounding steadily and gathering momentum, it still faces with challenges such as insufficient demand, it said.

Li Yong, chief researcher at D&C think tank, said the PBOC's assessment of the domestic economic situation is more optimistic than that of the second-quarter meeting.

The PBOC vowed to enhanced support for key sectors and weak links of the national economy, such as inclusive finance, green development, technological innovation and infrastructure construction.

Meanwhile, the central bank said that it will advance the effective implementation of the dynamic adjustment mechanism on mortgage rates for first-time home buyers and promote the establishment of a new development model in the real estate industry, in order to boost the stable and healthy development of sector.

As for the forex market, the central bank said it will resolutely correct one-sided and pro-cyclical behaviors, guard against risks of excessive fluctuations in the yuan's exchange rate and keep the exchange rate stable at reasonable and balanced levels.

(With input from Xinhua)

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