MNI BRIEF: PBOC To Introduce Additional Measures For Economy

MNI (BEIJING ) - The People's Bank of China will introduce additional measures to reduce funding costs and maintain moderate price increases in a bid to create a favorable monetary environment for the economic recovery, according to a statement published on its website Friday evening.

The Bank will support fiscal policies so they have a stronger impact, focusing on expanding domestic demand and boosting consumption. It will use additional tools to eliminate outdated production capacity, promote industrial upgrading and a deepening of financial service innovation, it said.(see:MNI: PBOC Seen Cutting Repo Rate Soon, Boosting Bond Trades)

In August, growth of both total social financing and yuan loans exceeded 8%, 4 percentage points higher than the H1 nominal GDP growth rate, indicating the monetary policy has provided solid support to the real economy despite accelerated structural transformation and high base of financial data, the release explained, noting in August, the weighted average interest rate for newly-issued corporate loans was 3.57%, down 8 bps from the previous month and 28 bps lower than the same period last year.