China's monetary policy provides robust support to real economy: central bank governor

BEIJING, Nov. 21 (Xinhua) -- China's monetary policy has provided significant support to the real economy and has proved to be well-calibrated, Yi Gang, governor of the People's Bank of China (PBOC), said Monday.

File photo taken on March 13, 2018 shows the headquarters of the People's Bank of China in Beijing. (Photo: Xinhua)

As the Chinese economy is faced with challenges and downward pressure this year, authorities have adjusted the monetary policy in a timely fashion to provide greater support to the real economy, Yi told the Annual Conference of Financial Street Forum 2022.

Thanks to the prompt policy adjustment, China has kept the economy stable, preserved price stability at home despite surging inflationary pressure worldwide, and maintained a fine balance between internal and external equilibrium, he said.

While providing significant support to the real economy, the PBOC has not substantially expanded its balance sheet, he said, noting that its size has remained relatively stable over the past five years, with an average growth rate of 2.6 percent.

Yi pointed out that the central bank also leveraged structural monetary policy tools to enhance support for agriculture, small and medium-sized enterprises, private companies and other structural weak links on the supply side, making finance more accessible, available and affordable.

Regarding the housing market, Yi said the PBOC has tailored policy solutions to local specificities, including cutting mortgage rates and down payment ratios to support real housing needs.

The PBOC has also rolled out a carbon-reduction tool to foster green development, he said. Operating on market principles, this tool supports financial institutions' lending to enterprises focusing on clean energy, emission reduction and carbon reduction.

By the end of September, the carbon-reduction credit facility has financed carbon-emission cuts of more than 80 million tonnes, according to Yi.