 "China economy to rebound in 2023 under precise monetary policy: PBoC")
China's economy is expected to generally rebound in 2023 and monetary policy will be precise and forceful, the central bank said in its quarterly policy implementation report released on Friday.
The People's Bank of China (PBOC) said it will focus on supporting domestic demand expansion and stabilising economic growth and prices while avoiding "flood-like" stimulus, according to the report.
However, it said that the external environment remains "severe and complex", adding that the basics of domestic economic recovery are "not solid".
The report also said the property sector requires time to transition while the pressure of balancing local government fiscal revenue and expenditure persists.China will closely watch the trend and changes in inflation and keep the prices of energy and food stable, said the report.
The report has not changed substantially from the previous one, with markets anticipating a government reshuffle, especially of the economic team, and the announcement of economic targets and policies for 2023 during an annual parliamentary meeting kicking off on March 5.
The world's second-largest economy is stabilising and improving but still faces many challenges, Premier Li Keqiang said at a cabinet meeting on Wednesday, after the country's economic growth slowed to one of the worst levels in half a decade due to stringent Covid-19 lockdowns and curbs in 2022.
The PBOC will keep liquidity reasonably ample and maintain effective credit growth, according to the report.The central bank also pledged to start improving social expectations and boosting confidence, mainly focusing on stabilising economic growth, employment and prices.
As the problematic property sector has showed a tentative recovery, the PBOC said it will satisfy reasonable financing demand in the sector but insist on not using real estate as a short-term means to stimulate the economy.
Late on Friday, the PBOC and banking and insurance regulator issued a notice to encourage commercial banks to issue loans for the purchase of housing by rental housing groups.
(Reporting by Ellen Zhang and Ryan Woo; Editing by Alex Richardson, Kirsten Donovan)
The People's Bank of China (PBOC) said it will focus on supporting domestic demand expansion and stabilising economic growth and prices while avoiding "flood-like" stimulus, according to the report.
However, it said that the external environment remains "severe and complex", adding that the basics of domestic economic recovery are "not solid".
Also Read
The report has not changed substantially from the previous one, with markets anticipating a government reshuffle, especially of the economic team, and the announcement of economic targets and policies for 2023 during an annual parliamentary meeting kicking off on March 5.
The world's second-largest economy is stabilising and improving but still faces many challenges, Premier Li Keqiang said at a cabinet meeting on Wednesday, after the country's economic growth slowed to one of the worst levels in half a decade due to stringent Covid-19 lockdowns and curbs in 2022.
The PBOC will keep liquidity reasonably ample and maintain effective credit growth, according to the report.The central bank also pledged to start improving social expectations and boosting confidence, mainly focusing on stabilising economic growth, employment and prices.
As the problematic property sector has showed a tentative recovery, the PBOC said it will satisfy reasonable financing demand in the sector but insist on not using real estate as a short-term means to stimulate the economy.
Late on Friday, the PBOC and banking and insurance regulator issued a notice to encourage commercial banks to issue loans for the purchase of housing by rental housing groups.
(Reporting by Ellen Zhang and Ryan Woo; Editing by Alex Richardson, Kirsten Donovan)
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%