People’s Bank of China vows to satisfy people’s housing needs as downturn drags on

On broader monetary policy, the PBOC reaffirmed it will step up “counter-cyclical adjustment,” a phrase that typically signals more pro-growth policies to address short-term volatility in the economy.

The People’s Bank of China vowed to cater to the nation’s need for quality housing, in a signal of support for the troubled property sector that has dragged on the economy.

The central bank called for “fully recognizing the latest changes in the property market’s supply and demand relationship” in a statement Friday, after a quarterly meeting of its monetary policy committee. The readout didn’t elaborate on specific measures.

On broader monetary policy, the PBOC reaffirmed it will step up “counter-cyclical adjustment,” a phrase that typically signals more pro-growth policies to address short-term volatility in the economy. It also reiterated a pledge to promote a rebound of consumer prices, as deflationary pressures persist in the world’s No. 2 economy.

Now in its third year, China’s housing slump remains the biggest drag on economic growth. Despite a broad package of rescue measures unveiled last month, economists and investors remain skeptical over whether policymakers have done enough to reverse the downturn.

The PBOC also repeated a pledge to use comprehensive policies to correct any deviation in the yuan exchange rate, as the Federal Reserve’s delay in a rate cut keeps the dollar strong. It also reaffirmed a veiled warning on long-term government bond yields as a bull run in the safe-haven asset continues.