MNI BRIEF: PBOC To Speed Up Credit Expansion-Pan Gongsheng

The People’s Bank of China will accelerate credit expansion and keep liquidity ample to shore up the economy, while striking a balance between policy stimulus and sustainable growth, stable employment and inflation, and financial risk prevention, said Pan Gongsheng, deputy governor of the central bank, at a briefing on Thursday.

The PBOC will front load its accommodative measures and strengthen efforts at a proper pace to boost the economy and help roubled market entities, Pan said, pointing out certain sectors and groups, including small and medium-sized companies, have suffered shocks from the pandemic since April, and urgently need policy support.

The central bank will provide incentives for commercial banks to increase loans for small and micro businesses and some key sectors, such as energy security, tech innovation and supply chain, he said, noting it will further reduce loan rates via guiding down lender borrowing costs and providing cheap relending funds.