MNI BRIEF: PBOC To Ensure Economy-Wide Liquidity - Dep Gov Lu
MNI (BEIJING) - The People’s Bank of China will ensure liquidity across the economy and financial markets remains reasonably sufficient via further cuts to the reserve requirement ratio, government bond trading and other open market operations, said Deputy Government Lu Lei on Saturday at the Caixin Summit 2024.
The focus of intermediate targets of monetary policy will shift to interest-rate adjustment from money supply control considering prices may be more related to economic performance and offer real-time control and measurability, he explained, noting fiscal and monetary policies should work in tandem, with promoted mechanisms for injecting and withdrawing liquidity. (See MNI INTERVIEW: PBOC To Cut Rates Further, Target 2% CPI)
The Bank will foster a steady improvement to total factor productivity through its structure facilities targeting technology, green, inclusive, pension, and digital sectors in a bid to incentivise financial resource allocation and risk management of institutions.