China to Maintain Loose Monetary Policy Amid Challenges
China will maintain a loose monetary policy to support its economy. The central bank aims to keep liquidity ample and stabilize the yuan amid external shocks.
The central bank of China has pledged to maintain an appropriately loose monetary policy while acknowledging the growing impact of changes in the external environment. According to the readout from its first-quarter monetary policy committee meeting, the People's Bank of China (PBOC) noted that while the economy is broadly stable, it still faces challenges such as strong supply, weak demand, and external shocks. The central bank reiterated its commitment to keeping liquidity ample, guiding a recovery in prices, and maintaining the yuan exchange rate at basically stable, reasonable, and balanced levels.
