BUSINESS China's monetary policy to be "neither too tight nor too loose:" PBOC

BUSINESS

China's monetary policy to be "neither too tight nor too loose:" PBOC

Global Times

01:55, August 12, 2018

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(Photo: VCG)

China's central bank has said that the country's prudent monetary policy will be kept neutral and be neither too tight nor too loose. 

Focusing on the tasks of serving the real economy, containing financing risks and deepening financial reform, the People's Bank of China (PBOC) will find new ways of financial regulation, and maintain policy continuity and stability, according to a second-quarter report released by the PBOC. 

The central bank will make policies more forward-looking, flexible and effective, maintain proper control over the floodgate of money supply and keep liquidity at a reasonable and abundant level, the report said. 

"Policies will be preset or fine-tuned based on changing situations, and attention will be paid to stabilize and guide expectations," the report added. 

The PBOC will also optimize the financing and credit structures, improve the transmission mechanism of monetary and credit policies, and raise the capacity and willingness of financial institutions to serve the real economy to create a moderate financial environment for supply-side structural reform and high-quality development. 

"[It will] deepen market-oriented reform for interest rates and exchange rates, actively open up the financial sector in an orderly manner and raise the sector's vigor and resilience," the report read. 

The central bank will also stand firm on structural deleveraging, intensify efforts in the tough battle against financial risks, and forestall systemic financial risks, the report said.

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