China's central bank pledges moderately accommodative policy to support growth

China's central bank, the People's Bank of China, will maintain a moderately accommodative monetary policy, use a range of tools to strengthen counter-cyclical and cross-cyclical adjustments, and keep the RMB exchange rate basically stable at a reasonable and equilibrium level, it said at a recent meeting.

The meeting noted that the external environment remains complex and volatile, with global economic growth sluggish. The domestic economy remains generally stable but faces challenges including weak demand and structural divergence. The central bank will coordinate incremental and existing policies, maintain ample liquidity, keep the growth of aggregate social financing and money supply broadly aligned with economic growth and price targets, and continue to lower overall financing costs.

The central bank will also monitor the bond market, improve monetary policy transmission, and strengthen the resilience of the foreign exchange market while stabilizing market expectations. It will guide financial institutions to step up services for the real economy, targeting support toward technological innovation, small and micro businesses and the private sector, while advancing high-level financial opening-up to sustain economic growth and maintain a sound financial landscape.