China’s Central Bank Vows Greater Support For Real Economy

Dec 24, 2021

China’s Central Bank Vows Greater Support For Real Economy

China's central bank offered further assistance for economic growth and stated it would modernize and target fiscal policy.

The People's Bank of China announced at the end of last week that it would start making more "assertive" financial policy instruments. The comment mentioned that "appropriate use" would be made of monetary policy instruments' quantitative and structural roles. This implies liquidity adjustments and initiatives aimed at specific communities.

Additionally, the central bank restated its goal of promoting "healthy" expansion in the real estate sector, protecting house purchasers' rights, and working to satisfy housing needs effectively.

The PBOC has so far shown restraint in terms of monetary incentive. Still, aspirations are rising that it will do extra next year, particularly if housing sector issues and sluggish private spending persist. With a number of foreign central banks , notably the Fed, considering tightening policies or already hiking rates, additional quantitative easing by the PBOC would exacerbate the disparity and might put downward pressure on the RMB.

Authorities emphasized their obligation to maintain a reasonable level of liquidity and stabilize credit rise. Additionally, the PBOC will maintain a relatively steady debt-to-GDP ratio to sustain the economic growth. It reaffirmed the Central Economic Work Conference's assessment that the home economy is confronted by three stuns: declining demand, disturbed supply, and lowered expectations.

The PBOC permitted banks to drop their benchmark lending rates by five basis points previously in December, after releasing 1.2 trillion yuan ($188 billion) of liquidity by reducing the number of cash banks are obliged to hold in reserve. It also decreased the interest rate on its minor company re-lending initiative, with credit growth rising last month after almost a year of decline.

On Saturday, the central bank stated that it would develop re-lending initiatives to assist smaller firms and large corporations decrease their carbon footprints. Additionally, it would direct banks to provide increased assistance to tech business, small businesses, private entities, and environmentally friendly initiatives. The PBOC also said it would inspire lenders to expand lending to the major industries.

Experts anticipate further easing in 2022, along with additional reserve requirement ratio reductions and perhaps a fall in policy interest rates since the protracted real estate slump is expected to continue to weigh on the economy. Additionally, officials said they would increase budgetary assistance in the next year to spur incentives to invest and infrastructure development.

Subscribe Our Newsletter

4 Healthcare Stocks That Wall Street Analysts Love
4 Healthcare Stocks That Wall Street Analysts Love

Stocks that have made a comeback are not among the biotech ones. Considering the recent hammering of prominent biotech stocks in the S&P 500, such as Moderna (MRNA), that's hardly surprising. They are also not pharmaceutical companies.

Stocks
Crypto Industry Betting On Trump To Oust Gary Gensler As SEC Chief

Anna

Crypto Industry Betting On Trump To Oust Gary Gensler As SEC Chief

Bitcoin has been on a bull run since the US election, with crypto enthusiasts eagerly awaiting news of how Donald Trump will meet his pre-election promises of being a crypto-president and making America the crypto capital of the planet. One specific promise he made during the recent 2024 Bitcoin Conference was that he would sack […]

Crypto
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Constantine

Coinbase vs. Сoinbase Pro: Which Platform is Right for You?
Find out what Coinbase and Coinbase Pro platforms are, what functionality they have, and what criteria distinguish them from each other.

discover
The Future of Stablecoins and Central Bank Digital Currencies (CBDCs)

Constantine

The Future of Stablecoins and Central Bank Digital Currencies (CBDCs)

In economics, the crypto market is a kind of "gray area," i.e., a classic shadow economy, because crypto unequivocally challenges the state monopoly on money issuance.

Blockchain
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.