China central bank to step up counter-cyclical adjustments, deepen lending rate reforms

The headquarters of the People's Bank of China, the central bank, is pictured in Beijing
FILE PHOTO: The headquarters of the People’s Bank of China, the central bank, is pictured in Beijing, China, as the country is hit by an outbreak of the new coronavirus, February 3, 2020. REUTERS/Jason Lee

May 10, 2020

BEIJING (Reuters) – China’s central bank said on Sunday it will make prudent monetary policy more flexible and step up counter-cyclical adjustments to support the real economy and fend off financial risks.

The People’s Bank of China (PBOC) said it the will continue to deepen lending rate reforms, improve the monetary policy transmission mechanism and guide lending rates lower.

In its first-quarter monetary policy implementation report, the bank added that it would deepen foreign exchange market reform, maintain yuan flexibility and keep the yuan basically stable.

It will also support private firms in raising money via equity financing and bond sales.

(Reporting by Judy Hua, Samuel Shen and Yew Lun Tian; Editing by Raju Gopalakrishnan)

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