Providing liquidity by the central bank is actually one of the ways in which the national monetary policy is used.

The central bank maintains the balance between social supply and total demand by adjusting the total money supply.

When the central bank thinks that the total demand is insufficient, it can increase the total social demand by increasing the money supply, which will help to reduce the loan interest rate, reduce the investment cost, stimulate investment growth and production expansion, and thus increase the total social supply.