The People’s Bank of China (PBOC) will focus on serving the primary goal of high-quality development, continue to create a favorable monetary and financial environment, strengthen synergy with other macroeconomic policies, and promote sustainable economic development, said an official from the Monetary Policy Department of the PBOC, according to China’s state broadcaster CCTV.
Next year, the central bank will work to steadily lower overall social financing costs and foster a favorable interest rate environment to support consumption expansion and investment promotion, the official said.
It will also leverage industry self-regulation to maintain fair competition in deposit and loan markets, stabilize banks’ funding costs, and enhance their independent and rational pricing capabilities, the official said..
In addition, the central bank will deepen market-oriented exchange rate reforms, strengthen exchange rate expectation management, respond effectively to external shocks, and resolutely prevent the risk of excessive exchange rate fluctuations to maintain the yuan’s exchange rate at a reasonable and balanced level, according to the report.
“We will effectively coordinate macroeconomic policies, implement a ‘combination of policy measures, including fostering a conducive liquidity environment for government bond issuance, increasing government bond trading operations, and supporting the implementation of a more proactive fiscal policy, which will help stabilize growth and adjust economic structures,” the official said.