November 22, 2022
Amid growing downside threats from the global economy, China’s central bank will accelerate the implementation of its conservative monetary policy and stabilize employment and prices in an effort to consolidate and improve an upward trend of the economy.
The People’s Bank of China (PBoC) stated in its third-quarter monetary policy implementation report that Beijing will maintain ample liquidity, direct commercial banks to increase medium- and long-term lending, and maintain reasonable growth in the money supply and scope of social financing.
The second-largest economy in the world is dealing with a number of challenges, such as extended COVID-19 restrictions, potential global recession risks, and a real estate downturn.
As a result of COVID-19 lockdowns, factory output expanded less slowly than anticipated, retail sales dropped for the first time in five months, and the property contraction grew more severe in October.
Following recent steps to relax some COVID rules and provide financial help to the faltering property sector, the depressing data presents a dilemma for Chinese officials as they navigate the $17 trillion dollar economy through rocky waters.
The central bank reaffirmed that “housing is for living in, not for speculating” with regard to the distressed property market and declared it would not utilize real estate as a short-term economic boost.
Source: Reuters
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