China’s central bank signaled it will step up support for the world’s second-largest economy as it struggles to recover from the impact of the coronavirus epidemic, pledging to intensify policies that will help companies, boost jobs and increase domestic demand, reported Caixin.
The People’s Bank of China (PBOC) has previously vowed to “avoid flood-like stimulus” and stick to targeted measures to bolster the economy, but the phrase was absent from its first-quarter monetary policy implementation report released on Sunday. The central bank said its policies would put more emphasis on growth and employment and reiterated its pledge to adopt a “more flexible” monetary policy to counter the “unprecedented” impact of the Covid-19 outbreak on the economy.
“In response to the problems caused by insufficient demand, reduced consumption, business difficulties, and increased employment pressure triggered by the coronavirus epidemic, we will intensify counter-cyclical adjustment of macro policies, firmly implement the strategy of expanding domestic demand, and comprehensively promote epidemic prevention and control and economic and social development,” the central bank said.
The PBOC will “place supporting the restoration and development of the real economy in an even more prominent position…. maintain abundant liquidity and support the real economy, especially small and medium-sized enterprises, to overcome the difficulties,” the report said.