China to maintain accommodative monetary policy

China’s central bank will continue to implement an accommodative monetary policy to support high-quality economic development, said its deputy governor on Thursday.

The central bank will utilise a combination of monetary policy tools to ensure adequate liquidity, encourage banks to pursue stable loan growth, and align social financing and money supply with economic growth and price targets.

Lu Lei, deputy governor of the People’s Bank of China (PBC), stated that the recent reduction in policy interest rates and loan prime rates will play a crucial role in promoting a steady decline in corporate financing and household credit costs.

The central bank will focus on improving the efficient use of funds and enhancing financial services for key sectors and areas.

In August, PBC conducted open market government bond transactions, resulting in a net purchase of bonds worth 100 billion yuan ($14.09 billion).

Attribution: Xinhua

Subediting: Y.Yasser