18.08.202504:58:52UTC+00PBoC Vows Targeted Support for China’s Economy

In a recent quarterly report published last Friday, the People’s Bank of China reiterated its commitment to implementing a "moderately loose" monetary policy with a strong focus on providing targeted support to bolster the economy. This announcement comes in the wake of indications that economic momentum slowed in July, due in part to domestic initiatives aimed at reducing overcapacity and the increasing tariffs imposed by the United States, which are putting a strain on growth. Despite these challenges, which include escalating trade barriers and tepid domestic demand, the central bank emphasized that the foundation of China’s economy remains robust and resilient. Regarding the issue of deflation, which has persisted for more than two years, the PBoC highlighted recent positive trends in the core consumer price index—excluding food and energy—which suggest the early stages of stabilization.