In a press conference held on Monday morning, People's Bank of China Governor Pan Gongsheng stated that the Chinese central bank will use monetary policy tools in the upcoming period to maintain ample liquidity, indicating that the bank is preparing to cut interest rates and the required reserve ratio (RRR) for banks.
The governor emphasized that the Chinese economy has already faced many risks and challenges over the past few years, expressing confidence in the government's ability to overcome economic difficulties.
The key points from Pan's statements today included: Interest rate tools and required reserve ratios will be used to maintain ample liquidity. China plans to significantly increase its fiscal deficit. China will remain a driving force for the global economy. Political focus should shift towards enhancing domestic investment and consumption. Challenges in economic development in China are still present. Focus will be placed on boosting consumer demand among the population. The real estate market in China is reaching a new balance. We will greatly ensure an increase in the allocation of the national foreign exchange reserve for China in Hong Kong. The People's Bank of China will support the Monetary Authority of Hong Kong in using the currency fund to rejuvenate the offshore market for the Chinese yuan.
