The Financial News, a publication put out by the People’s Bank of China (PBOC), wrote Wednesday that the central bank of China will look to increase demand and support a modest rebound in prices, according to an unnamed central bank official.

The PBOC will increase its coordination with the government’s fiscal and industrial policies and strengthen the guidance of expectations, as it closely monitors the effects of financial policies, the official told the outlet.

He went on to say the central bank, “will create an appropriate monetary and financial environment to promote effective demand in the real economy, support a moderate recovery in prices and enhance economic vitality.”

China’s strong growth in credit was also pointing to a recovery, as borrowing costs within the real economy fell, according to the official.

In August, new bank loans exceeded expectations as they almost quadrupled over July’s level, as the central bank worked to support economic growth in an environment of soft demand both at home and abroad.

In recent weeks, China has unveiled a series of policy proposals including interest rate cuts and property easing steps, which have been designed to support economic growth, which has been sputtering since the pandemic recovery faltered.

In August, consumer prices in China returned to positive growth, as deflationary pressures eased, and the economy appeared to stabilize.

Beijing’s official position has long been that there is no basis for any long-term deflationary outlook.

The official was quoted in the report as saying, “Reduction in existing mortgage rates will effectively reduce the interest burden on residents.”

Five major state banks in China have said they would begin to lower interest rates on existing mortgages for first-home loans, as one of several measures designed to prop up the ailing property sector.

The official added that they were reducing early mortgage repayments, which will also boost consumer confidence.