(Adds details, quotes)
BEIJING, May 15 (Reuters) - China's central bank said on
Monday it would keep liquidity reasonably ample and interest
rates reasonable and appropriate, focusing on supporting
domestic demand amid uncertainties.
The People's Bank of China (PBOC) would provide "strong and
stable" support for the real economy under its "prudent"
monetary policy that would be precise and forceful, the bank
said in its first-quarter monetary policy implementation report.
"The current external environment is becoming more complex
and severe, and the internal driving force of the domestic
economy is still not strong, and demand is still insufficient,"
the central bank said.
The "scarring effect" of the COVID-19 had not faded as the
sustainability of China's consumption recovery faced risks and
the employment pressure on young people was high, while a
slowing global economy was adding pressures on external demand,
the bank said.
The central bank would improve its cross-cyclical policy
adjustments, balancing short-term and long-term goals, economic
growth and price stability, and enhancing the sustainability of
supporting the real economy, it said.
The PBOC rolled over maturing medium-term policy loans while
keeping the interest rate unchanged on Monday, as expected, but
markets expect monetary easing may be inevitable in the coming
months to support the economic recovery.
The central bank would monitor marginal changes of goods
prices, guide and stabilise social expectations and keep prices
basically stable, it said.
China's consumer price inflation could pick up moderately in
the second half of this year, and there was no basis for
long-term deflation or inflation in the economy, the central
bank said.
(Reporting by Beijing newsroom and Kevin Yao, editing by Ed
Osmond and Alex Richardson)
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