China’s PBOC governor says there’s room to cut banks’ RRR

BEIJING — China’s central bank governor said there was room to further cut banks’ reserve requirements, and pledged to utilize monetary policy to “mildly” prop up consumer prices.

This is part of Beijing’s broader economic policy “adjustments” so the economy can hit its growth target of around 5% for the year, while adhering to a 3% fiscal deficit. Plans to issue “ultra-long” special bonds for major projects will also help meet that target.

Pan Gongsheng, governor of the People’s Bank of China, made these comments on Wednesday as part of a joint press conference with other key leaders of the country’s economy and financial sector on the sidelines of this year’s annual parliamentary meetings.

China’s growth target and economic plans for the year, released Tuesday in an annual government work report, fell short of many analysts’ expectations for further stimulus and raised questions about how China would be able to achieve another year of growth that’s around 5%. National GDP rose by 5.2% in 2023, up from a low base in 2022.

This is a developing story. Please check back for more updates.