February 17, 2011

China's central bank unveils measures to support grain production

The People's Bank of China (PBOC), the central bank, said Wednesday (Feb 16) that it would utilise monetary policy tools to promote grain production.

The central bank will closely monitor changes of grain prices on the overseas markets, and will resort to a number of policy tools to create desirable monetary conditions for stabilising general price levels.

The PBOC said that it would strengthen capital support to fight drought in key regions using such monetary policy tools as re-loan and re-discount, and it would guide financial institutions to grant loans for purchasing seed, fertiliser, and pesticides in time for spring planting.