China's central bank vows 'moderately loose' policy

China's central bank has outlined a "moderately loose" monetary plan aimed at boosting domestic demand to spur growth, days after President Xi Jinping called for more proactive macroeconomic policies.

Beijing last year struggled to lift the economy out of a slump fuelled by a property market crisis, weak consumption and soaring government debt.

Officials have unveiled measures aimed at bolstering growth, including cutting interest rates and easing homebuying restrictions, but economists have warned more direct stimulus may still be needed.


The People's Bank of China (PBoC) said in a statement it will "implement a moderately loose monetary policy... to create a good monetary and financial environment for promoting sustained economic recovery".

The statement released on Saturday reiterated plans to cut interest rates and the reserve requirement ratio which dictates how much banks must hold in their coffers, rather than lending or investing. It said the changes would be made "at an appropriate time" depending on conditions at home and abroad.