China to boost targeted policy support for economy -state media citing cabinet
Reuters
Published Aug 19, 2022 07:37AM ET
Updated Aug 19, 2022 08:16AM ET
BEIJING (Reuters) -China will step up fiscal and monetary policy support for the economy in a targeted way, state media quoted the cabinet on Friday as saying, raising expectations that more modest easing steps could be unveiled.
China's key activity indicators showed the economy unexpectedly slowed in July, raising the heat on policymakers to ramp up measures to cope with headwinds including a resurgence of local COVID-19 cases and a slowing global economy.
China will consolidate its economic recovery and keep economic operations within a reasonable range, state media quoted the cabinet as saying after a regular meeting chaired by Premier Li Keqiang.
"At present, the economy continues to recover its development trend, but there are still small fluctuations," the cabinet was quoted as saying.
"It is necessary to strengthen targeted financial and monetary policies to support the real economy, further consolidate the foundation of economic recovery, maintain the economic operation within a reasonable range," it said.
Policy insiders and analysts told Reuters that China's central bank (PBOC) is set to take more easing steps, though it faces limited room to manoeuvre due to worries over rising inflation and capital flight.
China is widely expected to lower its benchmark lending rates on Monday, a Reuters survey showed.
China will improve its market-based interest rate regime and support a rebound in effective credit demand, the cabinet said, adding that authorities will lower financing costs for enterprises and credit costs for consumers.
It also said China would extend an exemption of purchase taxes on "new energy" vehicles to the end of 2023 as part of the measures to boost domestic consumption.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.