May 10 2024: On Friday, China’s central bank announced its commitment to implementing a prudent monetary policy with precision and effectiveness. The bank aims to uphold price stability and prevent risks of the yuan exchange rate overshooting.
In its first-quarter report on monetary policy implementation, the People’s Bank of China (PBOC) attributed current low prices to weak demand in the real economy and imbalances in supply and demand. It anticipated a gradual uptick in the consumer price index by year-end and a narrowing contraction in the producer price index.
Additionally, the PBOC outlined plans to conduct research on policies and strategies for managing existing property stocks and optimizing new housing developments.
