November 08, 2024 12:16 GMT
MNI BRIEF: PBOC To Support Credit In Key Sectors: Q3 Report
MNI (BEIJING)
The People’s Bank of China will watch for changes in the monetary policy moves of major overseas central banks and keep a reasonable level of credit growth to support key sectors of the economy, according to the Bank’s Q3 monetary policy report published Friday.
The PBOC will ensure reasonable liquidity in the interbank market and keep stable money market rates, it said, noting credit demand from traditional drivers such as real estate and local government funding vehicles have significantly slowed, while equity and bond financing, which is better suited to new drivers like high-tech and innovative enterprises, has accelerated, as a result, relevance of money supply to the economy has decreased. (see:MNI INTERVIEW: PBOC To Cut Rates Further, Target 2% CPI )
The PBOC will maintain exchange rate flexibility, monitor cross-border capital flows and strengthen expectations management to prevent any overshooting the yuan exchange rate.
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