China noted a probable reduction in the required reserve ratio of banks to improve their credit expansion capacity in order to support economic recovery and stabilize market confidence. PBOC Governor Yi Gang recently stated that a reserve requirement ratio below 8% provides support to the real economy after 14 reductions in the last five years.
Meanwhile, China’s National People’s Congress fired the go-ahead, with a conservative growth target for 2023 announced at 5%against market expectations of a target range of 5-5.5%. Other economic targets were very similar to last year: fiscal deficit of 3% (2022: 2.8%), CNY 3.8 billion local government bond special fee (2022: CNY 3.65 trillion), job creation of 12 million (2022: more than 11 million) and CPI inflation around 3% (2022: 3%).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
