China will strengthen its economic policy and continue efforts to lower interest rates on loans, central bank Governor Yi Gang said, reinforcing expectations of further support measures to revive an economy ravaged by the coronavirus pandemic, reported Reuters.
Yi, in an interview published by the central bank on Tuesday, said China’s economic fundamentals are unchanged despite many uncertainties and reiterated that its current stance on monetary policy will be more flexible.
The People’s Bank of China will use various monetary policy tools to maintain sufficient liquidity, and keep the annual growth rate of M2 money supply and social financing significantly higher than last year, Yin said.
Since the virus outbreak, the central bank’s policy measures, including bank reserve requirement cuts, relending, rediscount facilities, have amounted to RMB 5.9 trillion ($827.63 billion), Yi said. The central bank said on Monday that it had cut the reserve requirement ratio (RRR) for big banks to 11%.
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