China's CB pledges to speed up policy response to economic woes

China's central bank said on Friday that it would adjust the pace and intensity of policy implementation in response to domestic and global economic and financial conditions.

- 

The world's No.2 economy has faced pressure this year due to US President Donald Trump's imposition of tariffs on Chinese products and persistent deflationary pressure at home.

"The external environment has grown increasingly complex and challenging, with weakening momentum in global economic growth, rising trade barriers, and diverging economic performance among major economies," the People's Bank of China (PBOC) said in a summary of its quarterly monetary policy committee meeting.

The economy "still faces difficulties and challenges such as insufficient domestic demand, persistently low price levels, and multiple hidden risks," the bank said.

"It is suggested that the intensity of monetary policy adjustments be increased, and the forward-looking, targeted and effective nature of monetary policy adjustments be enhanced," it added.

In May, the PBOC unveiled a raft of easing steps, including interest rate cuts and a major liquidity injection, as Beijing stepped up efforts to soften the economic damage caused by the trade war with the United States.

Investors are watching for signs of fresh stimulus from an expected Politburo meeting in July as well as clues from an anticipated plenum later this year, where top party leaders are likely to discuss the country’s 2026-2030 five-year plan.