The central People's Bank of China's (PBOC) monetary policy committee has opted to maintain a prudent monetary policy stance in the months ahead and keep interest rates stable.
The committee noted the need for a structural adjustment of loans, undertaking to limit loans flowing into industries where duplicate construction is a problem and pledging greater funding support to agriculture, small- and medium-sized enterprises (SMEs) and other areas that produce relatively more jobs.
China's tough employment situation, reflected in the rising numbers of workers laid-off in State sectors and migrant workers, has been a major concern for policymakers.
In an effort to help alleviate a persistent funding shortage at SMEs, a major source for new jobs, the PBOC allowed commercial banks earlier this month to broaden the range of lending rates, hoping they would increase lending to SMEs when being able to adequately price in related lending risks.
