Beijing: China will maintain a neutral and stable monetary policy while also assuring reasonable and ample liquidity, the People’s Bank of China has said.
The bank said it aims for balance among interest rates, exchange rates and international payments to ensure stable and healthy development of the economy and to stabilise market expectations. The bank also vowed to guard against financial risks and reaffirmed more financial support to the real economy and private sector.
China’s central bank didn’t follow the Federal Reserve’s interest-rate increase this week, with analysts saying growing uncertainty would keep it from increasing borrowing costs for some time.
Leading indicators for China’s economy show growth continued slowing in September amid the escalating trade war with the US.
Premier Li Keqiang has vowed to further cut taxes, administrative fees and red tape in an effort to support the real economy.
The remarks followed president Xi Jinping’s pledge that the nation will “unswervingly” encourage, support and protect development of the private economy, while at the same time encouraging state-owned enterprises to be “stronger, better and bigger”.