China’s central bank to step up policy measures to stimulate economy ahead of Party congress

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BEIJING (Reuters) – China’s central bank will step up implementation of prudent monetary policy and further support the real economy, its governor, Yi Gang, said on Friday, according to a statement from the People’s Bank of China (PBOC).

Yi made the remarks ahead of a very important Communist Party congress on Sunday during a meeting of G20 finance ministers and central bank governors on Oct. 13.

The PBOC has increasingly relied on structural or targeted policy tools, including low-cost loans, to support the slowing economy as it faces limited room to cut interest rates. interest for fear of fueling capital flight and inflation.

Yi said the PBOC will focus on supporting infrastructure construction and accelerating the pace of using loans to realize real estate projects. He also said the central bank would help financial institutions provide loans for equipment upgrades in key sectors including manufacturing.

The central bank said in late September it had set up a loan facility worth more than 200 billion yuan ($27.6 billion) to help manufacturers and other businesses upgrade equipment .

He also said Chinese local governments may gradually ease the interest rate limit for commercial housing loans for first-time home buyers in some cities.

(Reporting by Albee Zhang and Ryan Woo; Editing by Muralikumar Anantharaman and Jacqueline Wong)

Copyright 2022 Thomson Reuters.

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