China’s Politburo: Will cut the RRR and interest rates in a timely manner

China held the Politburo meeting on Friday, with the key takeaways noted below.

• Will cut the Reserve Requirement Ratio (RRR) and interest rates in a timely manner.
• Will maintain abundant liquidity, and strengthen support for the real economy.
• Will create new structural monetary policy tools and new policy-based financial instruments to support scientific and technological innovation, expand consumption, and stabilize foreign trade.
• Will focus on stabilizing employment, enterprises, markets and expectations.
• Necessary to increase income of low- and middle-income groups.
• Necessary to vigorously develop service consumption, and enhance the role of consumption in stimulating economic growth.
• Will set up service consumption and pension reloans.
• Will accelerate the integration of domestic and foreign trade.
• Will work with the international community to uphold multilateralism and oppose unilateral bullying.
• Will continue to make efforts to prevent and resolve risks in key areas.
• For enterprises that are greatly affected by tariffs, will increase the proportion of unemployment insurance funds to stabilize jobs.
• Strengthen agricultural production and stabilize the prices of grain and other important agricultural product.
• Necessary to continuously improve the policy toolbox for stabilizing employment and stabilizing the economy.
• Will implement established policies early.
• Introduce incremental reserve policies in a timely manner according to changes in the situation.
• Strengthen unconventional counter-cyclical adjustments, and make every effort to consolidate the fundamentals of economic development and social stability.
• Will continue to implement the policy of reducing local government arrears owed to enterprises.