China’s PBOC Governor Yi Gang said in the virtual meeting of the World Economic Forum, “monetary policy will continue to prop up the economy, but at the same time we will watch for the risks. We will keep a delicate balance between supporting economic recovery, at the same time preventing risk.”
“One risk is the macro leverage ratio of China increased somewhat last year, the second risk is non-performing loans that are growing, and we also look at external risks, which is look at the capital flow situation,” he added.
Yi also pledged to “ensure our policies are consistent and stable”, and the central bank “will not exit from supporting policy prematurely.”
