China’s central bank structural policy tools rise to $952 billion

China's central bank structural policy tools rise to $952 billion
FILE PHOTO: A man walks past the headquarters of the People’s Bank of China (PBOC), the central bank, in Beijing November 20, 2013. China will lift controls on deposit rates when conditions are ripe, the central bank vice governor said on Wednesday, as part of efforts to push forward a market-based interest rate regime. REUTERS/Jason Lee

BEIJING : China’s outstanding structural policy tools totalled 6.87 trillion yuan ($952.14 billion) at the end of June, the central bank said on Wednesday, up 0.7 per cent from 6.82 trillion yuan at the end of March.

The central bank has in recent years expanded its arsenal of structural policy tools, including relending and rediscount facilities and other low-cost loans.

A senior central bank official said last week that the bank will use policy tools such as the reserve requirement ratio (RRR) for banks and its medium-term lending facility to weather the challenges facing the world’s second-largest economy.

Data this week reinforced views that China’s post-COVID recovery is faltering rapidly, raising pressure on policymakers to deliver more stimulus to shore up activity.

($1 = 7.2153 Chinese yuan renminbi)



Source: Reuters