MNI BRIEF: PBOC Governor Signals "Stronger" Economic Support

People's Bank of China Governor Yi Gang said the bank will provide "stronger" support for the real economy in a speech to a G20 meeting of finance ministers and central bank governors on Thursday.

Yi said in Thursday's speech that the PBOC would maintain prudent monetary policy as prices were "basically stable" in China. Inflation accelerated to 2.8% y/y in September compared to 2.5% in August, according to data released by the National Bureau of Statistics on Friday. (See MNI BRIEF: China Sep CPI Rises 2.8%: Highest Since April 2020)

The PBOC has stepped up its support for the economy, this week announcing it had reintroduced its PSL targeted credit facility to pump CNY108 billion into China’s policy banks to support infrastructure development.(See MNI: PBOC Reactivates Policy Bank Lending Tool As Demand Lags)

On the international front, Yi offered his support for the IMF's proposal for developing the global payments system and the need to “enhance the resilience of the international monetary system.” He also supported the implementation of the G20 Common Framework for Debt Disposal and will “make sure private sector creditors can participate.”