Governor Yi Gang said China's central bank will focus on maintaining monetary policy stability, with support aimed at small enterprises and environmentally friendly projects.

"We have phased out some temporary supportive measures as the pandemic is gradually contained and economic activities resume," Yi said, "but our support for small and medium firms and green finance will remain."

"We've concentrated more on maintaining monetary policy consistency, stability, and sustainability," he said.

Yi's remarks are in line with recent recommendations from policymakers to "fine-tune" policies rather than flood the economy with support as growth slows. The PBoC has taken small, targeted actions to boost the economy, such as offering cheap loans for green projects, rather than taking broad measures like decreasing interest rates.

PBOC Governor Sends Warning to Central Banks on Quantitative Easing - Caixin Global

Yi said that the PBoC will use structural monetary policy tools to aid the country's long-term objective of carbon neutrality. While pursuing a greener future may have a negative impact on the economy in the short term, he believes it is critical to achieve a balance in terms of policy responses.

As the global economy gradually recovers, policymakers in major countries may face new challenges in coordinating monetary and fiscal support, according to the governor. 

Yi stated that the global economic recovery has slowed since the middle of this year as a result of recurring virus outbreaks, disruptions in global supply chains, and an increase in energy prices. A sustained imbalance between supply and demand could hinder long-term economic recovery, he said.

Meanwhile, worldwide inflation has risen dramatically, and the topic of whether price pressures are temporary is still being debated. In light of the global economy's various uncertainties and the pandemic, countries should strengthen policy coordination and collaboration on critical global concerns such as climate change, Yi said.