(Bloomberg) -- China’s central bank pledged to support domestic demand and maintain “effective” growth of credit as the economy reopens from Covid restrictions.

Monetary policy “will focus on stabilizing growth, employment and prices, as well as supporting the expansion of domestic demand,” the People’s Bank of China said in a statement on Friday after the quarterly meeting of the monetary policy committee, which was convened by Governor Yi Gang.

The PBOC reiterated it will provide stronger backing to the real economy, keep prices basically stable and step up targeted stimulus for key areas and industries damaged by the pandemic. It also said it would meet the property industry’s reasonable financing needs, and push forward mergers and acquisitions in the sector.

China’s top leaders pledged earlier this month to revive consumption and support private businesses at a key agenda-setting economic policy meeting, following an abrupt reopening from Covid Zero. Monetary policy will be “targeted and forceful,” which means that monetary stimulus will at least match the magnitude of 2022 in next year, according to recent remarks by PBOC’s Deputy Governor Liu Guoqiang. 

The economy has been suffering disruptions from soaring Covid infections since the beginning of December, though high-frequency indicators provide signs of an initial recovery in cities where infections already peaked. The PBOC has refrained from significantly easing the monetary policy since a surprise rate cut in August, with officials repeating the pledge that China won’t flood the economy with stimulus.

Chinese President Xi Jinping is also counting on an economic recovery in 2023 to get his norm-defying third term in power off to a good start. 

The recovery of the economy is “still not yet solid,” and the pressures of shrinking demand, supply shocks and weakening expectations are still heavy, the PBOC said in the statement on Friday. 

©2022 Bloomberg L.P.