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China’s cabinet flags more measures to support economy – Metro US

China’s cabinet flags more measures to support economy

People wearing protective masks cross a bridge in the Central
People wearing protective masks cross a bridge in the Central Business District on a “blue sky day” in Beijing as the spread of the novel coronavirus disease (COVID-19) continues

BEIJING (Reuters) – China’s cabinet on Wednesday held out the prospect of more measures to support an economy under pressure from a slowing global recovery, volatile commodity markets and COVID-19 outbreaks.

State media quoted the cabinet as saying it would roll out policies to stabilise market expectations in a timely way, without giving details.

Analysts expect China’s central bank to lower borrowing costs or pump more cash into the economy to spur growth.

“All departments should study contingency policy plans in response to changes in the situation and roll out measures conducive to the stability of market expectations in a timely way,” the cabinet said.

Authorities will step up financing support for consumption and investment, and the central bank will provide loans to support tech innovation and an inclusive elderly care sector, the cabinet said.

Authorities will also postpone pension insurance premium payments by firms in the catering, retail, tourism, civil aviation and transport sectors in the second quarter, the cabinet said.

China’s top European business group warned on Wednesday that its “zero-COVID” strategy was harming the attractiveness of Shanghai as a financial hub, echoing analysts voicing caution over the mounting economic toll of coronavirus curbs.

(Reporting by Kevin Yao and Beijing newsroom; Editing by Andrew Heavens and Mark Potter)

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