BEIJING, June 27 (Reuters) – China’s central bank announced on Friday its intention to modify the timing and strength of policy implementation in reaction to both domestic and international economic and financial conditions.
The world’s second-largest economy has encountered pressures this year from U.S. President Donald Trump’s imposition of tariffs on Chinese goods and ongoing domestic deflationary concerns.
“The external environment has become increasingly complex and challenging, with slowing global economic growth, increasing trade barriers, and varied economic performance among major economies,” stated the People’s Bank of China (PBOC) in a summary from its quarterly monetary policy committee meeting.
The economy “still faces challenges such as insufficient domestic demand, persistently low price levels, and multiple hidden risks,” the bank noted.
“It is recommended that the intensity of monetary policy adjustments be increased, and the forward-looking, targeted, and effective nature of these adjustments be enhanced,” it added.
In May, the PBOC introduced several easing measures, including interest rate reductions and significant liquidity injections, as Beijing intensified efforts to mitigate the economic impact of the trade conflict with the United States.
Investors are looking for indications of new stimulus measures from an anticipated Politburo meeting in July and insights from an expected plenum later this year, where top party leaders may discuss the nation’s five-year plan for 2026–2030.
“Regarding monetary policy, we do not anticipate aggressive actions unless there is a significant shift in the leadership’s economic views,” analysts at ANZ stated in a report.
ANZ predicts the central bank will reduce its key interest rate by 10 basis points before the expected Politburo meeting, followed by an additional 30-basis-point cut after the party plenum, likely in August, according to the analysts.
The PBOC affirmed its commitment to guiding financial institutions to boost credit supply and work towards lowering overall social financing costs.
It also pledged to strengthen the resilience of the foreign exchange market, guard against exchange rate overshooting risks, and maintain the yuan exchange rate at a “basically stable level”.
Concerning the struggling property market, the bank indicated it would intensify efforts to rejuvenate existing commercial housing and land inventory and continue reinforcing the “stable momentum” within the sector.
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China’s central bank pledges to speed up policy response to economic conditions
BEIJING, June 27 (Reuters) – China ‘s central bank said on Friday that it would adjust the pace and intensity of policy implementation in response to domestic and global economic and financial conditions.
The world ‘s No.2 economy has faced pressure this year due to U.S. President Donald Trump ‘s imposition of tariffs on Chinese products and persistent deflationary pressure at home.
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“The external environment has grown increasingly complex and challenging, with weakening momentum in global economic growth, rising trade barriers, and diverging economic performance among major economies,” the People ‘s Bank of China (PBOC) said in a summary of its quarterly monetary policy committee meeting.
The economy “still faces difficulties and challenges such as insufficient domestic demand, persistently low price levels, and multiple hidden risks,” the bank said.
“It is suggested that the intensity of monetary policy adjustments be increased, and the forward-looking, targeted and effective nature of monetary policy adjustments be enhanced,” it added.
In May, the PBOC unveiled a raft of easing steps, including interest rate cuts and a major liquidity injection, as Beijing stepped up efforts to soften the economic damage caused by the trade war with the United States.
Investors are watching for signs of fresh stimulus from an expected Politburo meeting in July as well as clues from an anticipated plenum later this year, where top party leaders are likely to discuss the country’s 2026–2030 five-year plan.
“On the monetary policy front, we do not expect an aggressive move unless there is a wholesale change in the leadership ‘s economic belief,” analysts at ANZ said in a note.
ANZ expects the central bank to cut its key interest rate by 10 basis points ahead of the expected Politburo meeting, followed by a further 30-basis-point reduction after the party plenum, likely in August, the analysts said.
The PBOC said it would guide financial institutions to step up credit supply, and push for the lowering of overall social financing costs.
It also pledged to enhance the resilience of the foreign exchange market, to guard against the risk of exchange rate overshooting, and to keep the yuan exchange rate “basically stable at a reasonable and balanced level”.
On the beleaguered property market, the bank said it would increase efforts to revitalise existing commercial housing and land inventory, and continue to consolidate the “stable momentum” in the sector.
Reporting by Ethan Wang, Yukun Zhang and Kevin Yao; Editing by Jane Merriman, Hugh Lawson and Gareth Jones