Monetary policy to remain flexible
China will maintain a prudent, flexible and targeted monetary policy in the second half of the year, its central bank said on Saturday, as it seeks to support growth while keeping the digital economy in check. China’s economy has staged a strong rebound from the impact of the Covid-19 pandemic, but recent data has suggested that gains are fading. Factory activity in July grew at the slowest pace in 17 months since February 2020 when the impact of lockdowns to control the coronavirus pandemic was first felt. New export orders contracted for three straight months. China’s months-long regulatory crackdown on a range of private companies has also left tech upstarts and decades-old firms operating in a new, uncertain environment. The People’s Bank of China (PBOC), in a statement on its website on Saturday after a meeting on its priorities for the second half of the year and called for “rectifying” e-commerce and other tech companies.
Published in The Express Tribune, August 1st, 2021.
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