One of China’s top central government authorities has flagged further efforts to maintain loose monetary conditions to support the recovery of the real economy in the wake of COVID-19.
He Lifeng (何立峰), chair of the National Development and Reform Commission (NDRC) said that “stable monetary policy must make ‘stability’ the watchword,” while also calling for “maintaining rationally ample liquidity and ensuring that growth in the money supply and total social financing basically matches nominal economic growth.”
The NDRC chair made the remarks on 18 August while delivering a report to the standing committee of China’s National People’s Congress.
He Lifeng said that China would “further employ the leading driving role of re-loans, re-discounts and monetary policy tools that directly reach the economy, to continue to guide the financial sector in actively supporting the recovery and development of the real economy.”
He also highlighted efforts to “expand the vigorous implementation of employment policies, strive to maintain the basic stability of prices,” and achieve “targeted support for the growth of the real economy.”