China central bank head says policy needs to support growth and curb risks

BEIJING: China’s monetary policy needs to focus on supporting economic growth in a targeted way while also reducing financial risks, the central bank head said. “Monetary policy needs to strike a balance between supporting economic growth and preventing risks,” People’s Bank of China (PBOC) Governor Yi Gang said in a speech made at a closed-door session at the China Development Forum on Saturday. “China’s macro leverage ratio is basically stable. We should provide positive incentives for economic entities and restrain the breeding and accumulation of financial risks.” The comments were published by the PBOC on Sunday. Yi said China’s monetary policy should focus on targeted support for key areas and weak links in the economy. Policymakers have pledged to support job-creating small firms that have been hit harder by the coronavirus pandemic. China’s broad money supply growth of about 10 per cent at present basically matches nominal economic growth, Yi said. — Reuters