BEIJING, July 8 (Reuters) – China’s economy is facing a structural mismatch between strong supply and weak demand, its central bank said on Wednesday, pledging to maintain an appropriately loose monetary policy and ramp up financial support to revive domestic consumption.
The world’s second-largest economy remains “generally stable” and improving, but faces challenges including “strong supply, weak demand, structural divergence and external shocks,” the People’s Bank of China said in a statement after a second-quarter monetary policy committee meeting.
The bank said it would strengthen guidance on policy interest rates, drive a reasonable rebound in prices, and keep the yuan basically stable at a reasonable and balanced level.
(Reporting by Ethan Wang and Kevin Yao; Editing by Andrew Heavens)
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