Following the US, China also eases… People's Bank of China "Expand liquidity to promote price rebound"

With concerns about a slowdown in the Chinese economy, the People's Bank of China indicated it would pursue an accommodative monetary policy.

On the 11th (Korea time), according to the industry, the People's Bank of China said in its third-quarter monetary policy implementation report, "We will comprehensively use various policy tools to keep overall financing conditions in society in a relatively relaxed state."

It added, "We will continuously improve the framework of monetary policy to strengthen policy implementation capacity and transmission," and emphasized, "We will keep liquidity sufficiently ample to harmonize the growth rates of total social financing and the money supply with the target levels of economic growth and inflation, and create an appropriate monetary and financial environment."

In October, China's consumer price index rose by only 0.2% year on year. Although this is a rebound compared with August (-0.4%) and September (-0.3%), it is still at a level that does not alleviate concerns about an economic slowdown. The People's Bank of China stressed, "We will make promoting a reasonable rebound in prices an important consideration in the conduct of monetary policy."

It also withheld a positive assessment of the current economic situation. The People's Bank of China diagnosed, "There is great instability and uncertainty. The international economy and trade order face serious challenges," and said, "The Chinese economy still confronts many risks."