MNI BRIEF: PBOC Mulls New Tools Targeting Consumption
MNI (BEIJING) - The People’s Bank of China plans to introduce new targeted tools to provide low-cost funding for key consumption sectors, an official told reporters on Monday.
Che Shiyi, head of the credit policy department of the Bank, said the PBOC will utilize a mix of tools such as reserve requirement ratio (RRR) reductions, relending and rediscount facilities and open market operations to maintain ample liquidity according to domestic and international conditions. (See:MNI INTERVIEW: Low Inflation Gives Room For More China Easing)
The PBOC will enhance financial support for expanding consumption, strengthen coordination between financial, fiscal, and industrial policies , and guide financial institutions to meet the funding needs of market participants, he said.