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China to gradually normalize monetary policy

2010-11-03 09:38

BEIJING - The People's Bank of China (PBOC), or the central bank, announced on Tuesday it would continue the moderately loose monetary policy and make it better-targeted and more flexible in the coming months of this year.

The announcement, which came in the PBOC's quarterly report posted on its website, said the central bank would gradually normalize the monetary policy from its counter-crisis mode and tighten control over liquidity to maintain moderate credit growth in the coming months of this year.

The central bank said it would gradually implement market-orientated reform of interest rates and keep the renminbi exchange rate basically stable.

In addition, the central bank said uncertainties about price trends were increasing and capital inflows would increase as developed economies recovered from the financial crisis.

China has implemented a moderately loose monetary policy over the past two years amid the global economic downturn. The country has raised its banks' reserve requirements four times and lifted interest rate once.

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