China’s monetary policy to remain accommodative while avoiding flood of liquidity: central bank

BEIJING, Aug 19 (Reuters) – China will keep its monetary policy accommodative while avoiding a big flood of liquidity, a senior central bank official said on Friday, in a bid to support economic growth amid the impact of COVID-19 and global uncertainties.

In a Q&A session posted on the People’s Bank of China’s website, deputy PBOC governor Liu Guoqiang also said that China will keep its prudent monetary policy framework, which does not target specific values for money supply and credit growth.

Previously, the PBOC has said it will maintain a prudent monetary policy and keep liquidity reasonably ample, while shifting towards targeted support for sectors hit by the coronavirus pandemic.

Friday’s comments come after data showed China’s economy grew a faster-than-expected 7.9% in the second quarter from a year earlier, but analysts have cautioned that a resurgence of local COVID-19 cases and a property market downturn could weigh on momentum.


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