Chinese Monetary Policy Will “Increase in Vigour” as Inflation Holds Steady: PBOC Governor Yi Gang

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The head of the Chinese central bank has signalled the implementation of more active monetary policy in future, amidst an environment of stable inflation yet economic uncertainty in China.

People’s Bank of China (PBOC) governor Yi Gang (易纲) said that the authority would “expand the intensity of the implementation of stable monetary policy and provide more vigorous support to the real economy”, while noting that prices for goods in China were still “fundamentally stable.”

Yi made the remarks on 13 October at a gathering of G20 finance ministers and central bank governors convened in Washington DC.

The PBOC head said that China would “provide focused and vigorous support to infrastructure development and support the issuance of loans by financial institutions for the upgrade and improvement of equipment in key areas such as manufacturing,” while also accelerating the usage of loans for the stabilisation of housing and expediting the steady and healthy development of the Chinese real estate market.

Yi also welcomed progress on the G20 Common Framework for Debt Treatment and the IMF’s proposals for the development of new global public infrastructure for payments and strengthening the resilience of the international monetary system.