China’s Central Bank Signals Stimulus to Prioritize Credit Growth Over Rates

(Bloomberg) — The People’s Bank of China (PBOC) pledged to keep monetary policy supportive to aid the economy’s recovery, while signaling that stimulus would likely focus on boosting credit rather than lowering interest rates. 

In a rare interview conducted in English with a state broadcaster, Governor Yi Gang said policy “will continue to be accommodative to support economic recovery in aggregate sense.” A transcript of the interview with China Global Television Network (CGTN) was released Monday by the central bank in both English and Mandarin, a sign that Yi’s comments were targeted toward an international audience.