China's central bank pledges stronger support for real economy

BEIJING - China's central bank on Wednesday pledged intensified efforts to implement the prudent monetary policy and give stronger support for the real economy.

In its third-quarter monetary policy report, the People's Bank of China said it will ensure the money supply and social financing grow at a reasonable rate to achieve better economic performance, while ruling out the possibility of "flood irrigation."

Policy and development banks will be directed to make full use of financial instrument quotas and 800 billion yuan ($114 billion) of newly-added credit line, while commercial banks will be guided to expand medium and long-term lending.

The central bank said it will keep an eye on the possibility of rising inflation in the future and move to facilitate steady grain production and a stable energy market.

Financial support will be provided in particular for weak economic links and sectors hit hard by the COVID-19 epidemic, and loans to small and micro firms and private enterprises will also be encouraged.

The central bank said it will also pay close attention to the spillover effects of economic developments and monetary policy adjustments in major developed economies.

The exchange rate of the renminbi will be basically stable at a reasonable and equilibrium level, and the bottom line of no systemic financial risk will be safeguarded, according to the report.