MNI BRIEF: Global Loosening Gives China Policy Space - Pan
Major economies are expected to loosen monetary policy in 2024 and the USD will weaken, allowing the People’s Bank of China (PBOC) greater policy space, Pan Gongsheng, PBOC governor said at a press conference on Wednesday.
China’s central bank had policy reserves and “rich toolbox” in place to maintain a flexible approach to conditions this year, with policymakers looking to balance growth with risk management, Pan added, noting that the authorities would take measures to support stablisation of prices and expectations, whist paying attention to the balance sheet health of banks.
Pan stressed the need to reduce financing costs in 2024, and noted there was still room for the deposit reserve ratio in China’s banking sector to be lowered. He believed the recent cut to the 5yr LPR rate would help the property market and boost consumption this year.