MNI BRIEF: China Leverage to Stabilize on Normal Growth: PBOC

China's central bank will seek to reduce the volatility of the macro-leverage ratio, expecting it to stabilize next year as economic growth fully recovers, People's Bank of China Governor Yi Gang told the Annual Conference of Financial Street Forum 2020 Wednesday. The ratio has risen during the period of recovery from the pandemic, Yi said, but the PBOC will better control liquidity to keep the leverage ratio at a reasonable level in the long run, Yi said.

Policies will continue to support small businesses, green development and stabilize employment, Yi said. The central bank will keep improving structural policies to help achieve positive annual growth, Yi said, warning over risks still for the economy and Covid-19. China will keep policies flexible and appropriate, with measures targeted to balance stabilizing economic growth and preventing risks, he noted, saying the PBOC will keep a normal policy stance for as long as possible.