The People’s Bank of China announced that it will not pursue broad monetary easing policies in order to avoid risky increases in debt and inflation, Bloomberg reported, citing the PBOC’s second-quarter monetary policy report released on Friday. Governor Zhou Xiaochuan is trying to meet this year’s target of 7.5% economic growth without resorting to broader easing. The PBOC has turned to unconventional tools including relending and selective cuts to banks’ reserve ratios to channel credit to areas like public housing and small companies. “It’s not appropriate to expand overall liquidity sharply to solve structural problems,” the central bank said in its report.
Categories