(Bloomberg) — China’s central bank will plan more policies to support growth, Governor Pan Gongsheng said, as the economy struggles to gain momentum.
The People’s Bank of China will strengthen efforts to effectively implement monetary and financial policies that have been introduced this year and further steps will be made in accordance with the requirements of the State Council, Pan said in an interview with state broadcaster China Central Television on Thursday. He didn’t elaborate on potential policies.
Latest data show China’s economic growth remains lackluster, with domestic demand faltering under a prolonged downturn in the housing market. That’s drawing renewed attention to the need for more stimulus.
Still, Pan said China’s financial system is relatively stable and overall risk has eased significantly.
Fixed-asset investment rose a slower-than-expected 3.6% in the first seven months of 2024 from a year earlier, according to data released Thursday. Industrial output and retail sales were broadly in line with economists’ forecasts. China’s housing slump also shows little sign of reversing.
While Pan didn’t shed much light on real estate policy, he reiterated that the PBOC is providing a relending program to help fund local-government purchases of unsold homes. The downpayment ratio of mortgage loans has dropped to record low of 15% and interest rates are also very low, he said.
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