Macroeconomic control takes effect
Updated: 2006-10-02 09:28 The People's Bank of China (PBOC), China's central
bank, has said the government's macroeconomic controls have begun to curb the
country's runaway growth.
The third-quarter meeting of the currency
policy committee (CPC) of the PBOC heard that the central bank had been closely
monitoring the economic and financial situation and using a variety of monetary
policies to curb the sharp growth of loans and maintain a stable financial
However, irrational economic structures, pressure on the environment and
resources and the imbalance of international payments were major problems
threatening China's economy, said a bulletin on the official PBOC website.
The government needs to maintain the continuity and stability of the
macro-control policies to expand domestic demand, improve investment structures,
and to promote the proper growth of investment.
Comprehensive measures should be taken to accelerate the improvement of the
economic structure, to promote the economic growth mode to move onto a more
efficient way, and to realize a harmonious and sustainable development of the
economy, said the bulletin.
Chaired by Zhou Xiaochun, governor of the PBOC, the committee discussed
China's monetary policies in the next phase.
A prudent monetary policy was recommended as coordination of domestic and
foreign monetary policies, and supervision of fluidity needs to be improved,
said the bulletin.
The growth of loans needed to be controlled at a reasonable level with direct
financing be encouraged and efforts made to expand the intermediate business of
commercial banks to improve their profit and loss structures.
The PBOC reiterated its principles of activeness, preemption and control of
the RMB exchange rate system, it said.
The PBOC would further improve the system of managed floating foreign
currency exchange rates based on market supply and demand to keep the RMB
exchange rate stable at a reasonable and balanced level.
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