Xuan Changneng details Asian central bank challenges and China's policy path
People's Bank of China Deputy Governor Xuan Changneng attended the 'Asia in 2050' conference and addressed challenges for central banks in Asia. He outlined China's robust growth and the PBOC's moderately accommodative monetary policy.
Asia's evolving landscape and central bank responses
Deputy Governor Xuan Changneng noted that emerging market economies (EMEs) face a mix of opportunities and challenges.
Demographic shifts, technological advancements, and geopolitical factors are significantly impacting EMEs' economic growth, employment, and financial stability.
He urged Asian central banks to strengthen domestic economic resilience, improve monetary policy frameworks, enhance macroeconomic policy coordination, and collaborate on global economic governance reform to better manage external shocks.
Xuan highlighted China's robust growth momentum, vibrant technology innovation, and accelerating new productive forces.
He emphasized the ongoing transformation of China's economic structure, stable employment, and a basically stable RMB exchange rate, all demonstrating the Chinese economy's strong resilience.
China is also steadily advancing green and digital transformation, providing global public goods.
PBOC's refined monetary policy toolkit
The People's Bank of China remains committed to a moderately accommodative monetary policy, aiming to foster a supportive financial environment for sustained economic recovery.
The PBOC will continue to refine its monetary policy framework by increasing the emphasis on price-based tools like interest rates and improving market-based interest rate transmission.
It plans to diversify its monetary policy toolkit, including enhancing structural monetary policy instruments and mechanisms for safeguarding capital market stability.
Furthermore, the PBOC will explore providing liquidity support facilities for non-bank financial institutions under specific circumstances.