MNI BRIEF: China Politburo Flags Policy Support; 3rd Plenum In July

China will continue its expansionary fiscal and monetary policy to cope with weak domestic demand and uncertain external environment, according to a statement of the Politburo meeting of the Central Committee of the Communist Party of China on April 30.

Monetary-policy tools, such as interest rates and the reserve requirement ratio, will be used at a flexible pace to reduce overall social financing costs, while fiscal authorities will launch ultra-long special treasuries soon and accelerate the issuance of special local-government bonds, maintaining a necessary strength of fiscal expenditure, the meeting said. (See MNI INTERVIEW: China Eyes Significant Special Treasury Issuance)

The meeting called for implementing large-scale equipment renewal and consumer goods replacement programs and flagged several challenges, such as insufficient effective demand and pressure on business operations among others. (See MNI INTERVIEW: China Trade-ins To Boost Consumption - MOFCOM's Xu)

It noted the third plenum of the 20th Central Committee of the CPC will be held in Beijing in July. (See MNI INTERVIEW2: CNY Strengthens, Third Plenum To Detail Reform)