PBOC’s Liu: Will try to reduce the coronavirus impact to help achieve economic goals for this year

Dhwani Mehta FXStreet

“We will as far as possible reduce the impact of the coronavirus epidemic to help achieve economic goals for this year, “the People’s Bank of China (PBOC) Vice Governor Liu Guoqiang said on Thursday.

China will keep the macro leverage ratio stable and prices stable, he added.

Further comments:

We're going to ensure ample liquidity through targeted RRR cuts in appropriate time.

We will increase re-lending and re-discount credit.

Will study and launch policies to support the capital replenishment of country's smaller lenders, to support the real economy.

We will keep to prudent monetary policy, have amply policy room.

Separately, China Banking and Insurance Regulator official Xiao Yuanqi said: “We have secured an appropriate increase of loans to SMEs, private companies.”

He said that the CBIRC will make sure there will be no systemic risks, which is our red line, adding that banking institutions have lent out 953.5 billion yuan to counter the epidemic as of Feb 26.

30% of China's small and medium enterprises have resumed normal production, country’s Industry And Information Technology Ministry official Zhang Kejian noted.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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