Pan Gongsheng, governor of the People’s Bank of China, delivers a speech during the 2024 Lujiazui Forum on June 19, 2024 in Shanghai, China.
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BEIJING — The head of the People’s Bank of China said in a closely watched meeting Tuesday that the central bank planned to maintain supportive monetary policy, according to state media.
PBOC Governor Pan Gongsheng added that the central bank intended to “increase the intensity of counter-cyclical monetary policy,” state media said in Chinese, translated by CNBC. Counter-cyclical policies refer to measures intended to address short-term economic developments. Pan has used similar language in recent months.
He was presenting a report on financial work at this week’s meeting of the National People’s Congress Standing Committee. The gathering, which wraps up Friday, is widely expected to approve further fiscal stimulus.
Finance Minister Lan Fo’an addressed the committee Monday about a plan to increase the local government debt limit in order to replace hidden debt, state media said. Lan on Tuesday also presented a report on managing state-owned assets, according to state media.
The PBOC in late September started cutting several of its interest rates in a bid to shore up slowing growth. The moves followed the U.S. Federal Reserve‘s shift into an easing cycle with a large 50 basis-point cut in mid-September. The Fed is expected to lower rates again when its two-day meeting ends Thursday local time.
