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China central bank promises stronger economic support

People’s Bank of China (PBOC) Governor Yi Gang said they will step up the implementation of its prudent monetary policy to provide stronger economic support. Yi, in a meeting of G-20 central bank governors and finance ministers, shared that the economy is facing “certain downward pressures” due to the pandemic. This makes it harder for the government to meet its 5.5% growth target this year. China’s central bank has taken a cautious easing path this year as aggressive rate hikes by the US Federal Reserve widen its monetary policy gap with the US and drive outflows. It kept the rate on its one-year policy loans unchanged at 2.85% last Friday while rolling over RMB100bn of the maturing loans amid ample cash levels in the banking system.

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