China central bank head pledges data-driven policy to aid recovery
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FILE PHOTO: File Photo: People's Bank of China (PBOC) Governor Pan Gongsheng attends a press conference on the sidelines of the National People's Congress (NPC), in Beijing, China March 6, 2024. REUTERS/Tingshu Wang/File Photo
BEIJING (Reuters) -China’s central bank head pledged on Monday to use a range of monetary policy tools to ensure ample liquidity, try to drive down funding costs and support economic recovery.
Pan Gongsheng, governor of the People's Bank of China, also told a news briefing that China’s monetary policy is primarily based on domestic data and economic conditions, following the Federal Reserve’s rate cut last week.
"Looking ahead, we will comprehensively use a variety of monetary policy tools based on macroeconomic conditions and changes in the situation," Pan said.
"This is also the basic methodology used by many central banks internationally including the Federal Reserve, the European Central Bank, and the Bank of Japan, when determining specific adjustments to monetary policy - namely, data-based decision-making."
Pan initially said the briefing, which focused on the financial sector’s achievements during the 14th five-year plan period (2021-2025), did not involve short-term policy adjustments. But he later commented on policy in response to a reporter’s question about the PBOC's considerations following the Federal Reserve’s rate cut.
China kept its benchmark lending rates unchanged for the fourth consecutive month in September, in line with market expectations, following the central bank's decision to hold a main policy rate steady last week.
Despite data last week suggesting the Chinese economy is losing momentum, authorities appear to be in no hurry to roll out major stimulus measures given resilient exports and a stock market rally, market watchers said.
(Reporting by Kevin Yao and Joe Cash; editing by Barbara Lewis)
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