China Still Has Room to Provide Liquidity to Economy: PBOC Chief
(Bloomberg) -- China still has room to pump liquidity into the economy while keeping its leverage ratio stable, People’s Bank of China Governor Yi Gang said in Beijing on Sunday.
China’s macro-leverage ratio, or total debt-to-GDP ratio, remains at a stable level, Yi said at the China Development Forum in Beijing. “This will not only provide positive incentives for economic players, but also help create an environment less likely to spawn financial risks.” he said.
China’s monetary policy is within the normal range with ample tools to moderate interest rates, according to the governor. The country’s financial policy framework will also take into account climate change, while its foreign-exchange reserves will invest more in green bonds and put a cap on high carbon assets, he said.
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