China’s macroeconomic policies should strengthen counter-cyclical control, officials explained at a joint press conference held by the People’s Bank of China (PBOC), the Ministry of Finance (MOF), and the National Development and Reform Commission (NDRC) on Tuesday, China Securities Journal reported.

A prudent monetary policy must adapt to changing conditions to ensure continued economic growth and the stabilization of inflation, which means tightening and loosening when required, said Zhu Hexin, deputy director of the PBOC.

Xu Hongcai, assistant to the minister of finance, then told reporters there will be larger tax and fee reductions this year, an extension of the 1.3-trillion-yuan cuts in 2018.

Meanwhile, the issuance of local government special bonds will be greatly increased. The MOF will use special bonds to boost investment and consumption. For example, it will kick off a number of major infrastructure projects in the areas of transportation, water conservancy and environmental protection.

Lian Weiliang, deputy director of the NDRC, said the body will use targeted measures – rather than strong stimulus – to encourage precise and effective investment. They will give the green light to investment projects that strengthen the weak links of the economy, such as Internet-related infrastructure.