(Reuters) – Chinese policymakers have implemented a raft of measures to support an economy jolted by a coronavirus outbreak that is expected to have a devastating impact on first-quarter growth.
The People’s Bank of China (PBOC) is attempting to restore investor confidence and as global markets shudder at the potentially damaging impact of the virus on world growth.
Below are some fiscal and monetary policies put in place by the government and the central bank since the outbreak:
** On Feb. 3 and Feb. 4, the People’s Bank of China (PBOC) pumped in 1.7 trillion yuan ($242.74 billion) through open market operations.
** The central bank said on Feb. 6 that it will use tools such as targeted reserve requirement cuts, re-lending and rediscount, to support key sectors.
The cost of special re-lending, at 300 billion yuan, from the PBOC to commercial banks is relatively low, it said.
The PBOC has told banks to cap rates on loans for selected firms at 3.15%, 1 percentage point lower…
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