(Bloomberg) — China’s central bank reiterated it will implement monetary policy that’s targeted and “forceful” this year to help support the economy, while the State Council warned of price risks in coming weeks.Most Read from BloombergThe People’s Bank of China said it will “comprehensively use multiple monetary policy tools, and keep liquidity reasonably ample,” according to a statement Wednesday following the PBOC’s annual work conference.The comments were largely a repeat of the central bank’s recent policy stance. Economists expect the PBOC to keep monetary policy loose for at least the next few months, with the economy still suffering disruption from widespread virus infections following the nation’s abrupt exit from its Covid Zero stance.The State Council, China’s cabinet, said authorities will aim to keep prices stable ahead of the Lunar New Year holiday later this month, according to a Wednesday report by Xinhua News Agency. China will ensure the supply of key products like energy, vegetables, grain and medicine, the State Council said in a meeting chaired by Premier Li Keqiang.Anyone hoarding products or driving up prices through collusion and market speculation will be punished, the State Council said, adding that stable prices were crucial to help support the economy in 2022.The PBOC on Wednesday reiterated a pledge to focus on stabilizing growth, employment and prices, and to push for an overall improvement of the economy. Officials have recently said monetary stimulus in 2023 will be at least as strong as last year, and policy will be focused on supporting domestic demand.Story continuesThe central bank said it will provide support for the recovery and expansion of consumption, and for major infrastructure projects. It also pledged to support the “stable and healthy development” of the property sector.It will also continue to prevent financial risks and push forward the digital yuan pilot scheme in 2023, it said.–With assistance from Jing Li.(Updates with additional details from PBOC and State Council.)Most Read from Bloomberg Businessweek©2023 Bloomberg L.P.

Source link