2023-10-22 13:10:59
China’s central bank chief: Pan Gongsheng at the annual meeting of the World Bank and the International Monetary Fund in Marrakech Image: EPA
The Chinese central bank wants to make its policies “more precise and energetic,” says central bank chief Pan Gongsheng. This is intended to stimulate the economy and avert financial dangers.
The Chinese central bank wants to support domestic demand and ward off financial risks in order to sustainably stimulate the economy. The central bank will make its policies “more precise and forceful” and encourage financial institutions to lower lending rates, thereby reducing financing costs for companies and individuals, People’s Bank of China Governor Pan Gongsheng said in a report to parliament released on Saturday .
A comment from Gustav Theile, Shanghai Published/Updated: , Recommendations: 36 Published/Updated: Recommendations: 4 Published/Updated: Recommendations: 3
Efforts would be made to stimulate capital markets and promote investor confidence. Financial supervision should be strengthened and the risk of default on bonds by large real estate companies should be eliminated.
China’s ailing economy grew more than expected in the summer and was therefore on the road to recovery. The gross domestic product in the world’s second largest economy, which was burdened by a real estate crisis and weak exporters, rose by 4.9 percent from July to September compared to the previous year. This was above the expectations of economists surveyed by Reuters. In view of this, the central bank recently decided against further interest rate cuts.
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