PBOC eyes tasks to keep economy on firm footing

Boosting domestic demand and stabilizing the property sector will be key priorities for China's central bank for the rest of the year in order to keep the nation's economic recovery well on track, officials and experts said.

The loan prime rates, China's market-based benchmark lending rates, may decline in the second half as the central bank tamps down financing costs in order to spur credit demand and alleviate financial risks facing the property sector, they said.

Their remarks came after emerging signs that China's economic recovery may have slowed due to lukewarm market demand, a subdued housing market and renewed COVID-19 cases.

To consolidate the economic recovery, the People's Bank of China, the country's central bank, pledged at a meeting on Monday to amplify support for enterprises' credit expansion and bring the role of effective investment further into play.

Efforts will be made to maintain steady loan growth, promote declines in real lending rates while keeping them overall stable, and make good use of financial tools to support infrastructure construction, the central bank said in a statement after its midyear work meeting.