China’s Economy Recovers, PBOC Pausing Stimulus

As the world’s second-largest economy rebounds, People’s Bank of China (PBOC) is pausing its monetary policy easing, Reuters reported, citing four sources on the matter.

The report says that the PBOC doesn’t see the need to ease further amid the economic recovery. Earlier this year, China’s central bank took extensive emergency measures to control the damages caused by COVID-19 crisis.

One of the sources told Reuters that they should keep monetary policy stable in the near term and leave some space for the future.

The central bank wants to keep conditions accommodative to support a recovery in the world’s second-largest economy

PBOC also wants to avoid the side-effects caused by an excessive stimulus, such as a surge in debt and risks of bubbles in the property market.