China Central Bank Hints It Will Dial Back Pandemic Stimulus
- PBOC has been using structural tools to boost financing
- Loan demand is recovering, reducing need for PBOC measures
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The People’s Bank of China signaled it may start gradually scaling back some of the stimulus measures implemented during the pandemic as the economy begins recovering and credit demand picks up.
Most of the structural tools — increasingly used by the central bank since 2020 to target specific areas of the economy — were “temporary,” Zou Lan, head of the monetary policy department, told reporters in Beijing on Thursday. The PBOC will exit the tools, most of which have a clear time period for an end, “as scheduled” after relevant problems in the economy are addressed and the policy goals are accomplished, he said.