Key facts
- The PBOC said China's economy faces a mismatch between strong supply and weak demand, structural imbalances and external shocks.
- The central bank said it would adjust monetary policy tools in a timely manner, restating an earlier pledge.
- The PBOC said it would maintain low overall borrowing costs and keep the yuan basically stable at a reasonable and balanced level.
- The PBOC said it would strengthen financial support for domestic demand, scientific and technological innovation and infrastructure projects.
- The central bank said it would enrich its policy toolkit and safeguard stable operations of the stock, bond and foreign exchange markets.
China's central bank pledged on November 11 to step up counter-cyclical adjustments, expand domestic demand and optimize supply to pursue the year's economic development goals, according to its third-quarter monetary policy implementation report.
The People's Bank of China said the economy faces a mismatch between strong supply and weak demand, structural imbalances and external shocks, and described the external environment as increasingly complex and volatile.
The central bank said it would continue to implement appropriately loose monetary policy to create what it called a favorable monetary and financial environment for stable economic growth. It reiterated a pledge to adjust monetary policy tools in a timely manner.
The PBOC said it would maintain low overall borrowing costs and keep the yuan exchange rate basically stable at a reasonable and balanced level. It also said it would strengthen financial support for domestic demand, scientific and technological innovation and infrastructure projects, and would enrich its policy toolkit while safeguarding stable operations of the stock, bond and foreign exchange markets.