China central bank anticipates injecting more liquidity in second half of 2012
2012-08-07 14:11:06
The monetary policy should play a counter-cyclical role in the country's economy and credit policies will be improved to shore up the development of the real economy, the People's Bank of China (PBOC) said in a news release on its website.
It reiterated the significance of making the monetary policy more forward-looking, targeted and effective to support steady and relatively fast economic growth.
The statement came as analysts anticipate further cuts in interest rates and the reserve requirement ratio as China has recently seen weakening demand for its products and easing inflation.
Dwindling orders from Europe and other trade partners have sapped China's exports and, combined with a cooling property sector, slowed the country's economic growth rate to 7.6% in the second quarter, the lowest level since the first quarter of 2009.
To cope with the faster-than-expected slowdown, the PBOC has cut its lending and deposit rates twice this year and lowered the amount of funds that banks must keep in reserve for three times since December last year.
The PBOC also called for carrying forward with financial reforms on Sunday, while urging more efforts to maintain financial stability.