Banking and insurance regulator to help keep inflation under control
China's top banking and insurance regulator will work with other government departments to mitigate imported inflation pressure, unclog domestic supply and production chains, and keep domestic price increases within a reasonable range, an official said on Friday.
The country has been under fairly high imported inflation pressure recently due to the influence of geopolitical factors against a backdrop of global inflation, although its price level still remains relatively low, said Ye Yanfei, senior advisor of the Policy Research Bureau of the China Banking and Insurance Regulatory Commission.
In addition, a resurgence of COVID-19 infections in some Chinese cities and provinces has led to bumps in freight logistics and a suspension of some links in the production chain at certain periods. This may also trigger price hikes, said Ye at a news conference held by the State Council Information Office.
The CBIRC will continue to implement a flexible and prudent monetary policy, maintain reasonably adequate liquidity and improve the stability of growth of total credit, he said.
The regulator will urge banking and insurance institutions to step up financial support for agricultural production, important agricultural product processing, and the construction of warehouse and cold chain logistics infrastructure.
It will also urge the banking and insurance sectors to ensure smooth freight logistics and increase financial support for truck drivers, such as making reasonable arrangements for loan extensions or renewals if truck drivers face temporary difficulties in repaying their auto loans due to the COVID-19 pandemic, Ye said.
The CBIRC will keep strengthening international price monitoring and deal with possible shocks brought by changes in the international environment in a timely manner. In particular, it will guide financial institutions to help enterprises strengthen foreign exchange risk management and exchange rate expectation management, he said.
