BUSINESS China adheres to prudent monetary policy: central bank governor


China adheres to prudent monetary policy: central bank governor


09:02, October 22, 2020

A teller counts cash at a bank branch in Hangzhou, capital of East China's Zhejiang province. (Photo: China Daily)

China will continue to pursue a prudent monetary policy and financial policies that have been proven effective in mitigating the COVID-19 economic shocks, the country's central bank governor said Wednesday.

China will continue to implement and perfect the financial measures that have effectively reduced the impacts of COVID-19 on the economy and extend sustained support to micro and small businesses, the job market as well as green development, said Yi Gang, governor of the People's Bank of China, at the Annual Conference of Financial Street Forum 2020.

According to Yi, the country's monetary policy has been timely and effective in response to the novel coronavirus outbreak and aims to better facilitate high-quality economic development.

Green recovery will get special importance, Yi said, adding that financial policy framework shall be improved to work closely with fiscal, industrial and technological policies to fuel green growth.

The central bank will pursue a prudent monetary policy that is more flexible, appropriate and targeted while striking a balance between stabilizing growth and forestalling risks, he said.

Keeping a normal monetary policy, positive interest rates and an upward yield curve is generally conducive to the sustainable economic and social development, as well as the global competitiveness of renminbi assets, Yi added.

The conference, which runs from Oct. 21 to 23 in Beijing, features four parallel forums centered around financial cooperation and reform under global changes, offering an interactive platform for the finance and real economy.

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