BEIJING (Reuters) – The People’s Bank of China (PBOC) reiterated on Monday that it would step up support for the real economy, while closely monitoring inflation due to domestic factors and policy adjustments in developed economies.
China’s central bank said in its first-quarter monetary policy implementation report that it is committed to maintaining reasonably ample liquidity, prioritizing financial stability and taking measures to boost confidence. .
“COVID-19 and the crisis in Ukraine have led to increased risks and challenges, and the complexity, severity and uncertainty of China’s economic development environment have increased,” the central bank said.
But China still enjoys favorable conditions for its long-term economic development thanks to its market potentials and large room for maneuver, she added.
China will keep its interventions within reasonable limits, without resorting to stimulus measures that would flood the markets, the PBC added.
It promised to continue to keep the yuan at a fundamentally stable exchange rate and maintain its leverage ratio.
The Chinese economy is suffering from the health restrictions put in place by the authorities, in particular the confinement in force for more than a month in Shanghai, its economic capital.
As a further illustration of the risks linked to health measures in the country, exports grew in April at their slowest pace since June 2020 (+3.9% over one year) while imports remained stable.
The BPC announced two weeks ago a reduction in foreign exchange reserve requirements for banks and other easing measures are expected.
(Report Kevin Yao and the Beijing office, French version Laetitia Volga, edited by Kate Entringer)
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