Chinese Central Bank Commits to Ongoing Stability in Q3 Monetary Policy Report


The People’s Bank of China (PBOC) has flagged the maintenance of continued stability in its monetary policy settings in its third quarter monetary policy report.

The “2021 Q3 China Monetary Policy Execution Report” (2021年第三季度中国货币政策执行报告) released on 19 November by PBOC highlighted “the ongoing recovery and development of the Chinese economy since the start fo the year,” as well as “key macro-economic indicators remaining in rational territory.”

“In the third quarter of 2021 year-on-year (YoY) GDP growth was 4.9%, for a two-year average of 4.9%,” said the report.

“For the first three quarters YoY consumer price index (CPI) growth was 0.6%, employment conditions were stable overall and import and export trade maintained rapid growth.”

PBOC said that it had “made stability the watchword, upheld flexible, targeted and rationally moderate monetary policy; effectively performed cross-cyclical policy design, maintained policy stability, strengthened foresight and effectiveness, scientifically managed market expectations, strived to service the real economy, effectively prevented financial risk, and operated an appropriate monetary and financial environment for the high-quality growth of the economy.”

In future, PBOC plans to “maintain the stability of monetary policy and stabilise market expectations, and endeavour to keep the economy operating within rational bounds.

This will also include “deepening supply-side structural reforms, accelerating the establishment of new growth conditions, establishing a modern central banking system, improving the modern monetary policy framework, and driving high-quality growth.”