Chinese Central Bank Vowed to Stabilize Economy

Central bank of China pledged to step up support for the economy as authorities try to reassure financial markets batter by dampened economic growth outlook amid COVID-19 lockdowns.

“The PBOC will step up the prudent monetary policy’s support to the real economy, especially for industries and small businesses hit hard by the pandemic,” the People’s Bank of China said in a statement on Tuesday.

The central bank said it will promote healthy and stable development of the financial markets and provide a good monetary and financial environment. It also said liquidity will be kept at reasonable level.

The statement follows a PBOC decision Monday to cut the amount of money that banks need to have in reserve for their foreign currency holdings, an attempt to help limit the drop in the yuan.