However, he stated that the external environment remains “severe and complex”, adding that the fundamentals of the domestic economic recovery “are not solid”. The report also notes that the real estate sector needs time to transition as pressure to balance local government tax revenues and expenditures persists.
China will closely monitor the trend and changes in inflation and keep energy and food prices stable, according to the report.
The world’s second-largest economy is stabilizing and improving but still faces many challenges, Premier Li Keqiang said at a Cabinet meeting on Wednesday, after the country’s economic growth slowed due to strict lockdowns. and restrictions due to Covid-19 in 2022.
Last year, Chinese GDP grew 3%, the second lowest growth in the last 45 years, below the 5.5% that the Asian giant had set as a goal.
According to the report, the PBOC will maintain reasonably ample liquidity and effective credit growth. The central bank also pledged to start improving social expectations and boosting confidence, with a particular focus on stabilizing economic growth, employment and prices.
As the troubled real estate sector has shown a timid recovery, the PBOC said it will meet reasonable funding demand in the sector, but insisted on not using the real estate sector as a short-term means of stimulating the economy.
Late on Friday, the PBOC and the banking and insurance regulator issued an advisory to encourage commercial banks to issue loans for home purchases by rental housing groups.
With information from Reuters
