(Yicai) Oct. 23 -- The People’s Bank of China will implement a more accurate and stronger monetary policy while maintaining moderate monetary aggregates and a stable pace to spur the continuous rebound of economic operations, according to the governor of the central bank.

The PBOC will comprehensively use different types of monetary policy tools to keep the money supply, social financing growth, and nominal economic growth on the same level, continuously deepen the marketization of interest rates, and further require financial institutions to lower the actual lending rate, according to a report Pan Gongsheng presented during the sixth session of the Standing Committee of the 14th National People’s Congress, China’s top legislature, on Oct. 21.

This is the second time this month that the PBOC governor released positive policy signals after saying at the 48th meeting of the International Monetary and Financial Committee held by the International Monetary Fund in Morocco that in the next step, the dual function of monetary policy tools’ total amount and structure will be exploited to focus on expanding the internal demand and boosting confidence to offer stronger supports to the real economy.

Since the beginning of the year, the PBOC has strengthened its support to the brick-and-mortar economy, implementing measures such as lowering financial institutions’ reserve requirement ratio twice to cumulatively unleash the long-term working capital worth over CNY1 trillion (USD136.7 billion), Pan noted in his report. M2, a broad measure of money supply that covers cash in circulation and all deposits, grew 10.3 percent as of the end of last month from a year earlier, and accumulated social financing rose 9 percent in the period, he added.

The PBOC will guide various regions to carry out differentiated housing credit policies and support property developers’ reasonable demand for financing to guarantee the smooth delivery of residential property projects, Pan said about the resolution of real estate market risks.

At the end of August, the PBOC announced to cut interest rates on outstanding personal loans for first-time home buyers from Sept. 25. So far, interest rates on nearly 50 million existing housing loans worth a total of CNY22 trillion (USD3 trillion) have been cut, with an average interest rate reduction of 0.73 percentage point, data revealed by Pan in his report also showed.

Editors: Dou Shicong, Futura Costaglione