China will continue efforts to reduce lending rates

US, WASHINGTON (ORDO NEWS) — China will strengthen its economic policy and continue efforts to lower interest rates on loans, said Yang Gang, head of the country’s central bank. It is reported Reuters.

In an interview published by the central bank on Tuesday, I said that China’s economic fundamentals remain unchanged despite many uncertainties, and reiterated that the regulator’s position on monetary policy will be more flexible.

The People’s Bank of China will use various instruments of monetary policy to ensure sufficient liquidity and maintain the annual growth rate of the M2 money supply and social financing much higher than last year, noted I.

The COVID-19 pandemic has seriously damaged the world’s second largest economy. In Q1 , China’s GDP fell by 6.8% compared to the same period last year.

China has decided not to set a target for economic growth for the current year due to uncertainties regarding the effects of coronavirus.

The People’s Bank of China will deepen loan prime rate (LPR) loan rate reform to help lower real lending rates, I. said.

He also noted that China will help banks, especially small and medium ones, replenish capital through various channels and improve their ability to cope with “bad” loans.

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