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Monetary support 'adequate and accurate' in 2023: PBOC
Updated: Dec 18, 2022
By Zhou Lanxu and Ouyang Shijia
chinadaily.com.cn
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China's monetary policy will work to ensure "adequate" aggregate support and "accurate" structural efforts, Liu Guoqiang, vice-governor of the People's Bank of China, the country's central bank, said on Saturday.
On the aggregate front, the strength of the monetary policy in 2023 should not be smaller than this year and should be further increased if needed, unless economic growth and inflation exceed expectations, which is also a possible scenario, Liu said.
The PBOC will work to better meet the needs of the real economy and maintain reasonably ample liquidity in financial markets, preventing big fluctuations in the price of capital, he said while addressing the annual conference on China's economy, held by the China Center for International Economic Exchanges.
Citing that the country is one of the world's few economies that retain conventional monetary policy, Liu said the PBOC has relatively abundant monetary policy tools at hand, with room left in both quantitative and price instruments.
On the structural front, the central bank will continuously step up support for key areas and weak links of the economy, including small and micro businesses, technological innovation, green development and infrastructure, he said.
Specifically, financial support should be increased to safeguard the stability of the property sector, he said, citing the sector as a pillar of industry that features an unparalleled impact on people's life and wealth, macroeconomic circulation, industrial chain stability, public finance and financial markets.
The use of structural monetary policies that proved to be effective should be ramped up, while those created to work in a certain period of time should be withdrawn on schedule or extended if needed, according to Liu.
The PBOC will continue the use of the central bank, lending for clean and efficient coal use and scientific and technological innovation as well as the carbon emission reduction facility while giving full play to the role of capital in technological innovation.
