China’s central bank pledges timely policy tool adjustment
Data released in July showed economic growth at 4.3% in the second quarter, its slowest in over 3 years.
On August 2, China's central bank, the People's Bank of China (PBOC), announced its commitment to timely adjustments in monetary policy tools to facilitate panda bond issuance. The statement, which was published after a work meeting held on August 1, emphasized the bank's intention to maintain an appropriately loose monetary policy and ensure ample liquidity.
The PBOC pledged to "steadily promote the high-level opening of the financial market" and advance both domestic and international infrastructure cooperation. Additionally, the central bank would continue to support debt risk resolution for local government financing vehicles and promote their market-oriented transformation. The bank also aimed to help Shanghai enhance cross-border finance and offshore financial services, as well as consolidate Hong Kong's position as an offshore yuan hub.
The meeting, chaired by PBOC Governor Pan Gongsheng, followed a call by the Communist Party's Politburo on July 30 to accelerate fiscal spending on already budgeted infrastructure projects. Economic growth had slowed to 4.3% in the second quarter, its slowest pace in over three years and below the lower end of the full-year target of 4.5% to 5.0%.
The Politburo acknowledged "difficulties and challenges facing the economy" during its meeting, according to the Xinhua news agency.
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