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EDITOR-IN-CHIEF Paulo Coutinho
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Home›China›PBOC says monetary policy to remain prudent with fine-tuning

PBOC says monetary policy to remain prudent with fine-tuning

By -
Wednesday, June 22, 2016
137
0
A man walks past the People’s Bank of China headquarters in Beijing

A man walks past the People’s Bank of China headquarters in Beijing

China will continue its “prudent” monetary policy this year with fine-tuning at appropriate times, the People’s Bank of China said in its 2015 annual report released yesterday, echoing recent descriptions of its stance.
The central bank plans financial reforms including further opening up of the bond market and “two-­way” opening of capital markets, according to a 133 page report reviewing 2015 and looking into this year.
The reiteration of a “prudent” monetary policy stance comes after recent economic data suggest a tepid stabilization in the economy, which last year expanded at its slowest pace in a quarter century. The central bank is in the midst of a balancing act, tightening oversight of some financial products and seeking to keep a lid on debt growth while ensuring there’s enough credit supply to keep the economy humming.
In a written speech included in the report, the central bank’s governor Zhou Xiaochuan said the PBOC will continue to deepen financial reform and opening up in 2016, with special emphasis on assisting with structural reforms such as cutting excess capacity, destocking and deleveraging. Bloomberg

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