“At present, world economic growth is slowing down, inflation remains high, geopolitical conflicts continue, and the external environment is becoming more complex and harsh,” the PBOC said.
“Economic development faces the triple pressure of contracting demand, shock to supply and weakening expectations,” it added.
Favorable conditions in China, with stable and rising grain production and a stable energy market, will help keep domestic inflation basically stable, the central bank said.
China’s economy has recovered to some extent, but its foundations are not solid, Premier Li Keqiang was quoted as saying by state media on Tuesday.
Central bank Governor Yi Gang said earlier this week that China’s monetary policy will remain accommodative to support the recovery.
The PBOC will improve the market-oriented interest rate regime, promote lower global financing costs for businesses and support banks to replenish capital, the statement said.
The central bank also reaffirmed its stance to ease the CNY=CFXS yuan exchange rate and keep it basically stable.
