PBoC Governor Yi Gang said the Chinese central back will continue with the current targeted easing, even though domestic economy is improving. The targeted measures will ensure sufficient liquidity, lower borrowing costs and provided cheap credits. The measures have been working well and PBoC is planning to make the policy more precise.
Yi added that PBoC will deepen reform of the loan prime rate, and the benchmark lending rate, to help lower real lending rates. Also, it will steadily unify benchmark deposit, lending rates and market interest rates.
Nevertheless, he still warned that the global economy is facing severe challenge. The current downturn “will very likely be worse than the global financial crisis in 2008 and even the Great Recession.”
