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The
People's Bank of China (PBOC) said it will focus on supporting
domestic demand expansion and stabilising economic growth and
prices while avoiding "flood-like" stimulus, according to the
report.
However, it said that the external environment remains "severe
and complex", adding the basics of domestic economic recovery
are "not solid". The report also said that the property sector
requires time to transition while the pressure of balancing
local government fiscal revenue and expenditure persists.
China will closely watch the trend and changes in inflation and
keep the prices of energy and food stable, said the report.
The world's second-largest economy is stabilising and improving
but still faces many challenges, Premier Li Keqiang said at a
cabinet meeting on Wednesday, after the country's economic
growth slowed to one of the worst levels in half a decade due to
stringent COVID-19 lockdowns and curbs in 2022.
The PBOC will keep liquidity reasonably ample and maintain
effective credit growth, according to the report.
The central bank also pledged to start improving social
expectations and boosting confidence, mainly focusing on
stabilising economic growth, employment and prices.
As the problematic property sector has showed a tentative
recovery, the PBOC said it will satisfy reasonable financing
demand in the sector but insist on not using real estate as a
short-term means to stimulate the economy.
Late on Friday, the PBOC and banking and insurance regulator
issued a notice to encourage commercial banks to issue loans for
the purchase of housing by rental housing groups.
(Reporting by Ellen Zhang and Ryan Woo; Editing by Alex
Richardson, Kirstne Donovan)
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