More Flexible Monetary Policy To Revive Economy Grappling With Virus Epidemic

More Flexible Monetary Policy To Revive Economy Grappling With Virus Epidemic

In a statement after the politburo meeting, Chinese President Xi Jinping pledged to implement more flexible monetary policy to stimulate the economy grappling with the virus epidemic China's top leaders have signaled that the economy struggling with the virus outbreak will be more focused, saying monetary policy and fiscal policy will be more flexible. Fiscal policy will be more proactive, according to a statement after the Politburo meeting, which took place on February 21 and was led by Xi Jinping. Vice President Liu Guoqiang said in a separate statement that the Central Bank would provide long-term funding to the economy with some of its commercial loan reserves and would consider setting the benchmark deposit rate at an appropriate time. Coronavirus has caused millions of people to be unable to leave home and stay away from work. This affected large and small businesses that were suspended or had limited operations. As the epidemic continues to weigh on the Chinese economy, which has already recorded its slowest economic growth in three decades, rating firm S&P Global is warning that a protracted public health crisis could more than triple the rate of bad credit in the Chinese banking system.