Central Bank's Balancing Act: China's Economic Challenges

China's central bank plans to maintain a moderately loose monetary policy, addressing economic challenges and risks. The People's Bank of China aims to keep liquidity ample and costs low, while monitoring global economic conditions. Analysts are divided on further easing measures amid persistent trade tensions with the U.S.

Facing looming economic challenges, China's central bank announced its intention to maintain a "moderately loose" monetary policy. By ensuring ample liquidity and reducing costs, the People's Bank of China (PBOC) aims to counteract weaker domestic demand and ongoing U.S. trade tariffs.

In its third-quarter monetary policy report, the PBOC outlined plans to manage liquidity and interest rates, aligning them with current market conditions. Despite recent fiscal measures, debates continue over potential interest rate cuts by the year's end.

As trade tensions with the U.S. persist, Chinese policymakers tread a cautious path, opting for targeted fiscal policies rather than aggressive stimulus. Monitoring international economic shifts remains a key focus for the PBOC.

(With inputs from agencies.)