FX.co ★ PBoC Vows Stronger Support for Domestic Demand and Growth

In its Q3 monetary policy report, the People’s Bank of China (PBoC) pledged to reinforce counter-cyclical adjustments, stimulate domestic demand, and enhance supply to support sustained, higher-quality economic growth. The central bank said it will maintain a flexible, targeted, and forward-looking policy stance, ensuring ample liquidity and accommodative financing conditions, while aligning money supply and credit growth with the goals for economic expansion and price stability.

The PBoC also plans to expand structural policy support for domestic demand, technological innovation, small and micro-sized enterprises, and key infrastructure projects, and to diversify benchmark references for loan interest rate pricing beyond the loan prime rate (LPR).

On the yuan, the central bank reiterated its commitment to a managed floating exchange rate regime, with the aim of stabilising market expectations, preventing excessive currency volatility, and keeping the yuan broadly stable at a reasonable and balanced level.