BEIJING, (Reuters) – China’s central bank will continue to implement more measures to stabilize the economy in the face of downward pressure and keep ahead of market trends, Liu Guoqiang, Vice Governor, said Tuesday.

The People’s Bank of China cut unexpectedly Monday the borrowing cost of its medium-term loans. This was the first such reduction since April 2020.

Liu indicated that the company would expand its use of policy tools in an effort to stop a “collapse” in credit.

He said that he was urging people to hurry up and make their operations more forward-looking.

Liu stated that there is still scope for the central banks to reduce the bank’s reserve requirements ratios (RRR), even though this has been decreased by previous reductions.

Sun Guofeng is the head of the PBOC’s monetary policy division. He stated that the LPR (loan prime rate) would accurately reflect changes in market interest rates.

Sun noted that while cross-border capital flows can be subject to volatility due changes in international financial situation, there would not be much impact on them from policies adjustments made in advanced countries like the United States.

Liu stated that although the yuan could fluctuate from its equilibrium levels over the short term market factors as well as government policy will correct the deviations in the medium and longer term.