China’s cenbank says it will keep prices stable, guard against yuan overshooting risks

By Thomson Reuters May 10, 2024 | 8:02 AM

BEIJING (Reuters) – China’s central bank said on Friday it will precisely and effectively implement its prudent monetary policy, maintain price stability and guard against overshooting risks in the yuan exchange rate.

In its first-quarter monetary-policy implementation report, the People’s Bank of China (PBOC) said current low prices are caused by a lack of demand in the real economy and an imbalance between supply and demand. It said it expected a mild increase in consumer price index by the end of the year, and narrowing contraction in the producer price index.

The PBOC also said it would also coordinate research on policies and measures for absorbing the stocks of properties and optimising new homes.

(Reporting by Ella Cao, Ethan Wang and Ryan Woo; editing by Mark Heinrich)