Source: CCTV.com
02-24-2009 10:55
The Chinese government will continue its "moderately easy" monetary policy in 2009, and give top priority to stable economic growth. The People's Bank of China made the statement in an report on fourth-quarter monetary policy.
The Chinese government will continue its "moderately easy"
monetary policy in 2009, and give top priority to stable
economic growth.
In its report, the central bank says it will ensure ample liquidity in the banking system and promote a reasonable and stable growth of credit.
It will strictly scrutinize the usage of loans, and give priority to key industry projects, small and medium-sized firms, agriculture, energy saving, technology innovation and regional development.
The report reaffirms that China will keep the yuan exchange rate basically stable, while making it more flexible in a self-initiated, gradual and controllable manner.
China will deepen reform on foreign exchange management to facilitate foreign trade. And it will improve risk management on balance of payments and foreign exchange reserve.
It also promises to help companies tackle capital and financing problems, and give proper direction to privately-run lenders.
Bank officials also say the financial sector will give more credit support to environmental protection.
China witnessed its monetary policy shifting from "tight" to the current moderately easy last year. At the beginning of 2008, the central bank said it would continue its tight monetary policy to deal with inflation and ease overheated sectors. By the middle of the year, the Consumer Price Index, a main gauge of inflation, fell, and the housing market softened.
But by August, US and European financial woes were gradually making their way to China. This forced the the central bank to re-consider its monetary policy.
02-24-2009 10:55
The Chinese government will continue its "moderately easy" monetary policy in 2009, and give top priority to stable economic growth. The People's Bank of China made the statement in an report on fourth-quarter monetary policy.
The Chinese government will continue its "moderately easy"
monetary policy in 2009, and give top priority to stable
economic growth.
In its report, the central bank says it will ensure ample liquidity in the banking system and promote a reasonable and stable growth of credit.
It will strictly scrutinize the usage of loans, and give priority to key industry projects, small and medium-sized firms, agriculture, energy saving, technology innovation and regional development.
The report reaffirms that China will keep the yuan exchange rate basically stable, while making it more flexible in a self-initiated, gradual and controllable manner.
China will deepen reform on foreign exchange management to facilitate foreign trade. And it will improve risk management on balance of payments and foreign exchange reserve.
It also promises to help companies tackle capital and financing problems, and give proper direction to privately-run lenders.
Bank officials also say the financial sector will give more credit support to environmental protection.
China witnessed its monetary policy shifting from "tight" to the current moderately easy last year. At the beginning of 2008, the central bank said it would continue its tight monetary policy to deal with inflation and ease overheated sectors. By the middle of the year, the Consumer Price Index, a main gauge of inflation, fell, and the housing market softened.
But by August, US and European financial woes were gradually making their way to China. This forced the the central bank to re-consider its monetary policy.
