Economics
China’s Central Bank Pledges Support for Businesses Hit by Covid
- PBOC also calls for ensuring LGFVs’ reasonable funding needs
- Likelihood of broad-based easing has declined: Goldman Sachs
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China’s central bank announced a spate of measures to help an economy which has been hit by lockdowns to control the current Covid outbreak, but the focus on boosting credit likely means the chances for broad-based easing are shrinking.
The People’s Bank of China told banks to meet the “reasonable funding needs” of local government financing vehicles, according to a document released with the foreign exchange regulator Monday. It also urged more lending to people with “flexible employment” such as taxi drivers, online shop-owners and truck drivers, and provide longer-term and cheaper loans to small businesses.