China to maintain prudent and flexible monetary policy amid complex international situation

Source:Global Times Published: 2020/1/1 13:53:39

A view of the PBC building in Beijing Photo: VCG



China's central bank said it will maintain a prudent and flexible monetary policy. It also said it will closely follow the complex situation both at home and abroad, and convert external pressure into motivation to deepen the country's reform and opening-up.

The People's Bank of China (PBC), the country's central bank, stressed it would innovate and improve its macro-regulatory ability with a steady and flexible monetary policy. It will keep the growth rates of the broader M2 monetary supply and social financing in accordance with the nominal growth of China's GDP, according to a statement from the PBC on Wednesday. The PBC noted that it would not flood the economy with a surplus supply of money, and that the overall price level will remain stable.

Financial institutions will receive guidance to increase their support for the real economy - particularly for small and medium-sized private enterprises - and to ensure financial support for private firms is commensurate with their contributions to economic and social development.

Against the global backdrop of emerging protectionism, China will further promote the opening-up of its financial sector at a high level to enhance its ability to manage economic and financial affairs, and to prevent and control risks under the conditions of opening-up, according to the statement.

The PBC's monetary policy is in line with China's annual Central Economic Working Conference which was held in December. The conference clarified that the country will adopt a prudent monetary policy to stabilize economic growth.

Although economic and financial environments both at home and abroad are facing accelerating changes, the PBC noted that China's major macroeconomic indicators have remained within a reasonable range and its economic growth remains resilient.



Posted in: MARKETS,ECONOMY

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