Friday, August 16, 2024

China: "PBOC Sees More Steps to Boost Growth But Nothing ‘Drastic’"

From Bloomberg via Yahoo Finance Canada, August 15:

China’s central bank chief pledged further steps to support his nation’s economic recovery, while cautioning that it won’t be adopting “drastic” measures.

Chinese state media published a pair of interviews with People’s Bank of China Governor Pan Gongsheng on Thursday after key indicators for July suggested the country’s economic growth remains lackluster. Retail sales gains remained subdued, while investment growth weakened — underscoring a faltering in domestic demand amid a prolonged downturn in the housing market.

The PBOC will strengthen efforts to effectively implement monetary and financial policies that have been introduced this year, and further steps will be made in accordance with the requirements of the State Council, Pan said in an interview with state broadcaster China Central Television. Maintaining price stability and promoting a moderate price recovery are important considerations, Pan said, in an apparent reference to enduring deflationary risks.

The interviews offer a rare direct insight into how the central bank chief of the world’s second-biggest economy is thinking about policy. The governor seldom speaks to the media or publicly, although he has been a little more visible this year, announcing a surprise rate cut at a press conference in January and laying out a new monetary policy framework in a speech in June....

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