The People’s Bank of China released measures to prop up the country’s economy as it struggles to deal with the impact of covid-related lockdowns on consumer activity. The PBOC published 23 measures which encouraged financial institutions to support local government infrastructure projects and the country’s struggling property sector, as well as provide financial services to industries hit by the pandemic, reports the Financial Times.
China’s monetary policy has come under growing pressure from a property slowdown and wider loss of economic momentum, which has been exacerbated in recent weeks by a spate of lockdowns that aim to curb the country’s worst Covid-19 outbreak in two years. Shanghai, the country’s biggest city and financial hub, imposed a citywide lockdown in late March and remains largely sealed off, while restrictions have since spread to dozens of other cities.
On Friday, the People’s Bank of China cut the reserve requirement ratio for banks by 25 basis points, a method of injecting more liquidity into the financial system that is part of a gradual easing cycle. The PBoC has stopped short of any dramatic shifts in policy.