China’s central bank is making stabilizing economic growth a top priority and will step up support for weak sectors, Deputy Governor Chen Yulu said. The People’s Bank of China has guided loan interest rates lower from an already low level, Chen said Thursday at a press briefing in Beijing. He reiterated the PBOC’s pledge to use new policy tools to cushion the economy, reports Bloomberg.
“The PBOC will make stabilizing growth a more prominent priority, strengthen cross-cyclical policy adjustment, and accelerate to implement policy measures already announced, especially to actively plan new policy tools,” said Chen.
The yuan extended losses, falling as much as 0.6% to a fresh low of 6.7630, after Chen’s comments. The decline came even after the central bank set a stronger-than-expected fixing for a eighth straight session on Thursday. The yield on 10-year government bonds was little changed at 2.82%.