China’s central bank has announced plans to adopt a supportive monetary policy as financial risks continue to ease. According to Pan Gongsheng, the governor of the People’s Bank of China (PBOC), the central bank will maintain a flexible and precise monetary policy to boost domestic demand and stabilize prices. This move comes as the country faces a patchy economic recovery and rising deflationary risks.

The PBOC aims to promote consumption, stabilize investment, and expand domestic demand while keeping prices at a reasonable level. The bank will also strengthen policy coordination and cooperation to support these efforts. Despite global uncertainties, the central bank remains committed to maintaining the stability of the yuan exchange rate.

The decision to adopt a supportive monetary policy reflects the PBOC’s confidence in the country’s economic stability. This approach is part of a broader strategy to manage the economy and mitigate the impact of external factors. The PBOC’s focus on marketization of deposit interest rates and the use of pledged supplementary lending facilities to support the property market underscores its commitment to driving economic growth.

Overall, the PBOC’s policy shift aims to address the challenges of weak consumer demand and slowing prices, while ensuring that the economy remains resilient and stable.