China’s Central Bank Signals Data-Focused Policy to Spur Recovery

China’s central bank chief pledged on Monday to use a range of monetary policy tools to ensure ample liquidity, reduce funding costs, and support the country’s economic recovery. Pan Gongsheng, governor of the People’s Bank of China, said at a news briefing on Monday that the country’s monetary policy is primarily driven by domestic data and economic conditions, despite last week’s rate cut by the US Federal Reserve. “Looking ahead, we will comprehensively use a variety of monetary policy tools based on macroeconomic conditions and changes in the situation,” Pan said, as Reuters reported. China kept its benchmark lending rates unchanged for the fourth consecutive month on September 22, in line with market expectations. This followed the central bank’s decision to hold its main policy rate steady earlier that week.