China's monetary stimulus in 2023 will at least be as strong as this year, with support continuing for targeted areas such as small businesses, a senior central bank official said.
"The magnitude of monetary policy will not be smaller than this year, and it can be stepped up if needed, unless economic growth and inflation exceed expectations," Liu Guoqiang, Deputy Governor of the People's Bank of China, was cited by local media 21st Century Business Herald, as saying at a forum in Beijing on Saturday.
China still has ample monetary policy tools, and there is still space for both quantity-based and structural tools, Liu said, according to the report. The PBOC will extend structural tools such as relending programs that encourage bank lending to projects related to technology innovation, carbon emission reduction and the clean use of coal, he said.
China will adopt a "targeted and forceful" monetary policy, the officials vowed during the annual Central Economic Work Conference in Beijing.
The country needs to take timely actions to stop plunging property prices, while at the same time sticking to the principle that "housing is for living in, not speculation," per Liu. The property industry is a pillar of the economy and has a huge impact on supply chains, government finances and financial markets, and must be kept stable, he said.