China’s central bank, PBOC, will increase countercyclical measures and strengthen support for domestic demand to help achieve this year’s economic targets. This is stated in the central bank’s monetary policy report for the third quarter.
PBOC notes that the economy is under pressure from, among other things, weak demand relative to supply, structural imbalances and external disruptions.
The central bank is maintaining a relatively accommodative monetary policy and says that its tools will be adjusted as needed. Overall borrowing costs will be kept low and the yuan broadly stable at a reasonable level.
The support will be directed, among other things, towards domestic demand, technological innovation and infrastructure projects.
