China’s monetary policy provides reliable support to the real economy

On Monday, November 21, Governor of People's Bank of China (PBOC) stated that the current course of the country’s monetary policy demonstrated its effectiveness and provided strong support to the real economy.

This year, China has faced many problems, including the threat of an economic downturn. Regarding this, the country’s central bank adjusted the monetary policy in time, thereby avoiding some negative consequences. 

According to news source FXStreet, the PBOC adjusted the policy relying on local circumstances. Thus, as a part of these policy changes, mortgage interest rates were decreased and down payment ratios were changed, as there were observed real housing needs in the country. The actions taken by the central bank allowed it to satisfy these needs, and therefore provided support to the real economy.