MNI BRIEF: PBOC Accommodative Stance Unchanged In H2: Zou

The People’s Bank of China will continue inplementing its moderately accommodative policy and boost existing measures in a bid to ensure hitting the annual economic growth target, deputy governor Zou Lan told reporters on Monday in a brief. 

Policymakers will manage both the strength and timing of actions to maintain ample liquidity, ensuring that the growth of total social financing and money supply aligns with economic growth and inflation targets, maintaining a favorable macro-financial environment, said Zou. Targetted monetary tools will continue to support structural reform, stressing the focus will be on key sectors and weak links, including technological innovation, boosting consumption, and assisting small micro-enterprises, he noted, adding the tools have stabilized the real estate and stock markets. 

The PBOC will improve the efficiency of capital use and prevent idle funds from circulating within the financial system, striking a proper balance between supporting the real economy and maintaining the health of the financial system, Zou stressed. (See MNI: Tariffs, Weak Demand To Drive Moderate PBOC Easing In H2)