Economics
China’s Central Bank Highlights Structural Tools to Aid Economy
- Paper by monetary officials highlights money-supply outcomes
- PBOC has just introduced slew of targeted relending programs
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The People’s Bank of China vowed to continue improving its structural monetary policy framework in a paper that highlighted the importance of targeted tools in helping an economy battered by Covid outbreaks.
Such instruments wielded by the PBOC have led to 2.3 trillion yuan ($345 billion) in new base money since 2020, its monetary policy department said in a research paper Friday. Using structural tools helped keep interbank liquidity ample, supported credit growth, and had a unique advantage in boosting the economy’s weak links, the central bank said.