PBoC Vows Targeted Support for China’s Economy

The People’s Bank of China reaffirmed its commitment to “thoroughly” implement a “moderately loose” monetary policy, emphasizing selective support for the economy, according to its quarterly report released last Friday. The pledge comes amid signs of weakening momentum in July, as domestic efforts to curb overcapacity and rising U.S. tariffs weigh on growth. While acknowledging challenges such as increasing trade barriers and sluggish domestic demand, the central bank stressed that China’s economic “foundation is solid and its resilience is strong.” On deflation, an issue that has lingered for over two years, the PBoC noted recent improvements in the core consumer price index, which excludes food and energy, suggesting early signs of stabilization.