People's Bank of China Implements Loose Monetary Policy

The People's Bank of China announced on Wednesday that it will implement an appropriately loose monetary policy and increase counter-cyclical adjustments to meet annual economic development goals. In its third-quarter monetary policy implementation report, the central bank identified several headwinds hindering growth, including external shocks, structural imbalances, and a mismatch between strong supply and weak demand.

To stabilize the economy, the bank plans to maintain low borrowing costs and ensure the stability of the yuan exchange rate. The central bank will expand financial support for domestic demand, scientific and technological innovation, and infrastructure projects. Additionally, the bank pledged to enrich its policy toolkit to maintain the stable operation of the bond, stock, and foreign exchange markets.