PBOC to keep accommodative credit conditions to consolidate recovery

China's central bank pledged on Tuesday to maintain accommodative financing conditions as the foundation for the domestic economic recovery "still needs to be consolidated through stronger policy efforts".

In its third-quarter monetary policy report released on Tuesday, the People's Bank of China said it will put into place a moderately accommodative monetary policy and make comprehensive use of various tools to keep overall financing conditions relatively accommodative.

According to the central bank, China's economy has shown great resilience this year, yet the foundation for sustained improvement "still needs to be consolidated through stronger policy efforts" as the momentum of global economic growth is insufficient amid severe challenges of the international economic and trade order, while the domestic economy still encounters risks and challenges.

The PBOC said it will continue improving the monetary policy framework and strengthen policy execution and transmission, including lowering banks' funding costs to help reduce overall financing costs.

It will also regard promoting a reasonable recovery in prices as a key consideration in policymaking, and keep the renminbi exchange rate flexible while guarding against any exchange rate overshooting risks.