Gold prices edged higher; remain near $3,400/oz as Sept rate cut bets rise
The People’s Bank of China (PBOC) has announced plans to adjust its monetary policy to support the country’s economy amid growing external challenges and domestic demand issues, according to Reuters.
In its fourth-quarter monetary policy implementation report, the central bank highlighted the worsening effects of external changes, alongside ongoing domestic challenges and potential risks.
The PBOC revealed that it would use a range of monetary tools, including adjusting interest rates and the reserve requirement ratio for banks. The central bank stressed that it would tailor the intensity and pace of its policy measures in response to both domestic and global economic conditions.
The goal is to ensure ample liquidity, promote a modest rebound in prices, and stabilize the yuan exchange rate at a reasonable level.
Since September, Chinese authorities have introduced several stimulus measures to strengthen the economy, including interest rate cuts, cash injections, and efforts to address local governments’ hidden debt. The government has pledged further actions this year to provide continued economic support.
In December, as deflationary pressures mounted and growth obstacles increased, Chinese leaders shifted away from their long-standing "prudent" monetary policy, opting for a "moderately loose" approach to counter the economic slowdown and stabilize growth. This policy shift reflects the urgent need to address the country’s economic challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.