China's central bank vows stronger support for real economy

China's central bank has pledged to strengthen macro-economic regulation to boost domestic demand and provide stronger support for the real economy as the country's economic recovery continues to pick up momentum.

"Currently, the external environment is becoming more complex and grave, with a slowdown in the world economy as well as international trade and investment, and still high inflation and with interest rates in developed countries expected to remain elevated," the People's Bank of China (PBOC), the central bank, said in a statement released on Wednesday.

The central bank said the Chinese economy continues to recover with increasing momentum, but it still faces challenges such as insufficient demand, according to the statement released after the third-quarter meeting of the PBOC monetary policy committee.

The PBOC will provide continuous support, ride the uptick in economic momentum, intensify the strength of macro-economic regulation, implement a prudent monetary policy in a targeted way, and make counter-cyclical and cross-cyclical adjustments, it said.

It vowed to enhance support for key sectors and weak links of the national economy, such as inclusive finance, green development, technological innovation and infrastructure construction, and guide enterprises' financing costs and household loan costs downward.

As for the forex market, the central bank said it will resolutely correct one-sided and pro-cyclical behaviors, guard against exchange rate overshooting risks and keep the yuan exchange rate basically stable at reasonable and balanced levels.