Mr. Pan Gongsheng was appointed Party Secretary of the People’s Bank of China on July 1, 2023.
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BEIJING—China has pledged to cut the amount of liquidity banks need to hold in reserves early next month to shore up its struggling economy.
Bank of China Governor Ban Gongsheng told a press conference in Beijing that bank reserve requirements will be cut by 50 basis points starting February 5, providing 1 trillion yuan ($139.8 billion) of long-term capital. Stated. Wednesday.
This is the first reduction in the deposit reserve ratio this year, following two cuts in the deposit reserve ratio last year. The central bank also said on Wednesday that there is room for further monetary policy easing. Reducing the reserve requirements that banks must maintain increases lenders’ ability to lend and boosts spending across the economy.
Data released last week showed the world’s second-largest economy will grow by 5.2% in 2023, roughly in line with official forecasts. Gross domestic product (GDP) also grew 5.2% in the fourth quarter, slightly below economists’ median estimate.
China’s post-coronavirus recovery has been lackluster, with Chinese leaders warning it will be “tortuous”.
China’s government is seeking to deleverage its once bloated real estate sector while boosting growth in a targeted manner as some of the country’s biggest property developers face serious debt problems. This increased financial risks and shook consumer confidence.
China vowed on Monday to “strengthen the inherent stability of the market” as domestic and overseas stock markets tumble.
This is a developing story. Check back for more updates.