Chinese Central Bank’s Q4 Monetary Policy Meeting Highlights “Better Satisfying” Rational Home Demand

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The People’s Bank of China (PBOC) has called for the financial system to continue to satisfy “rational” demand for housing in the wake of the Evergrande Group debt debacle.

PBOC called for “maintaining the lawful rights and interests of home consumers and better satisfying rational demand for housing from homebuyers” at its recent 2021 fourth quarter monetary policy meeting.

The meeting also called for “maintaining the continuity, stability and sustainability of steady monetary policy; scientific management of market expectations, striving to service the real economy, and effective prevention of financial risk.”

“The dividends of loan market interest rate reforms continue to be unleashed, the efficiency of monetary policy transmission is strengthening, and loan rates are declining amidst stability…renminbi exchange rate expectations are stable and bi-directional floating and elasticity is strengthening, playing the role of macro-economic stabiliser.”