BEIJING (Reuters) - China's outstanding structural monetary policy tools totalled 7.018 trillion yuan ($959 billion) at end-September, its central bank said on Wednesday, rising 2% from 6.78 trillion yuan at the end of June.
The People's Bank of China (PBOC) has expanded its basket of structural policy tools, including relending and rediscount facilities and other low-cost loans, but analysts say it is constrained now in how much it can ease monetary policy for fears of stoking capital flight and hurting the yuan.
In order to support the economic recovery after it lost steam following a brief COVID rebound, the PBOC in September cut the amount of cash that banks must hold as reserves for the second time this year to boost liquidity.
Thanks to a slew of policy support, the world's second-largest economy staged a faster than expected growth in the third quarter, increasing the chances Beijing can meet its growth target of around 5% this year.
China's top parliament body approved 1 trillion yuan in sovereign bond issuance on Tuesday which official said will bolster the economic recovery, as policymakers still need to deal with multiple headwinds including persistent drag from the property sector.
($1 = 7.3162 Chinese yuan renminbi)