Business / Economy

China's central bank sticks to prudent monetary policy

(Xinhua) Updated: 2014-10-06 10:53

China's central bank sticks to prudent monetary policy
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BEIJING -- China will continue its prudent monetary policy, flexibly use monetary instruments and maintain "moderate" liquidity to achieve reasonable growth in loans and social financing, the central bank said on Sunday.

After its monetary policy committee concluded its quarterly meeting,the People's Bank of China (PBOC) said in a statement that it will closely watch new developments in the domestic and international economy and finance as well as changes in international capital flows.

The Chinese economy is running within a "proper range" with prices remaining stable, but the world's second-largest economy is still faced with complicated situations, meeting participants said.

The tone in the statement is largely in line with the previous one released on July 7 after the quarterly meeting, but the latest statement stressed that the complicated situations should not be underestimated.

The U.S. economy is showing more positive signs, and the euro zone is once again stepping up efforts on monetary policy easing, while the real economy of some emerging markets are confronted with an array of difficulties, meeting participants held.

The meeting called for improvements to the structure of financing and credit, deepened financial system reform, and an improvement of the financial sector's capability to facilitate the real economy.

The monetary policy committee also urged for a market-oriented interest rate reform, and the renminbi's exchange rate formation reform to keep the exchange rate of the currency fundamentally stable at a reasonable and equilibrium level.


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