China’s Central Bank vows 'moderately loose' monetary policy

BEIJING

China's Central Bank has outlined a "moderately loose" monetary plan aimed at boosting domestic demand to spur growth, days after President Xi Jinping called for more proactive macroeconomic policies.

Officials have unveiled measures aimed at bolstering growth, including cutting interest rates and easing homebuying restrictions, but economists have warned more direct stimulus may still be needed.

The People's Bank of China (PBoC) said in a statement it will "implement a moderately loose monetary policy... to create a good monetary and financial environment for promoting sustained economic recovery."

The statement reiterated plans to cut interest rates and the reserve requirement ratio.

It said the changes would be made "at an appropriate time" depending on conditions at home and abroad.

The PBoC emphasised the need to weed out corruption, signalling the continuation of a long-running crackdown in China's finance industry.

It also said it would continue to help local governments resolve debt burdens with "financial support".

The measures are to "prevent and resolve financial risks in key areas, further deepen financial reform and high-level opening up, focus on expanding domestic demand, stabilising expectations, and stimulating vitality," the statement said.

The bank's announcement came after officials convened for a two-day conference in the capital.

Beijing was aiming for growth of around 5 percent in 2024, a goal Xi has expressed confidence in achieving but which many economists believe will be narrowly missed.