In its quarterly monetary policy implementation report, the People's Bank of China pledged to guide reasonable credit growth, lower firms' financing and household credit costs steadily and promote the steady decline in the cost of comprehensive social financing.
The PBoC also noted that prudent monetary policy should be flexible, moderate, precise and effective.
In addition, the Chinese central bank reiterated that it will keep liquidity reasonably ample and will maintain the fundamental stability of the Yuan exchange rate at a reasonable equilibrium level.
The PBoC also stated it will implement measures to prevent and resolve risks in key areas such as real estate, local government debt and small and medium-sized financial institutions, conduct stress tests on financial institutions' bond asset holdings risk exposure and prevent forex risks, and gradually increase the purchase and sale of Treasury bonds in the central bank's open market operations.
China's central bank also revealed intentions to strengthen the authority of policy rates, deliver clearer adjustment target signals of interest rates to the market, and strengthen market expectation guidance and focus on changes in long-term bond yields as the economy rebounds.