The Monetary Policy Committee of the People's Bank of China (PBC) held its first quarterly meeting of 2009 in Beijing days ago.
After analyzing the economic and financial situation, the Committee held that the international financial crisis further spread and deepened, and the international financial market was still in turbulence. In order to cope with the impacts brought about by the crisis and promote the stable and relatively rapid economic development in China, the government adjusted the direction of macroeconomic policy in a timely manner and took a series of policy measures to stimulate domestic demand.
At present, these policy measures have taken preliminary effects, and the Chinese economy is showing positive signs, including adequate liquidity in the banking system, rapid growth of money and credit supply and stable operation of the financial system.
After studying the direction and measures of monetary policy in the next stage, the Committee held that, in view of implementing the decisions and arrangements made by the CPC Central Committee and the State Council on macroeconomic management, relatively loose monetary policy should be conducted and policy consistency be maintained.
In this connection, the PBC would further streamline the transmission mechanism of monetary policy, maintain adequate liquidity of the banking system and ensure that the aggregate money supply be sufficient to support economic development. Efforts should be made to optimize credit structure, to bolster the financial support for weak links such as agriculture, farmers and the rural areas and small- and medium-sized enterprises, to address financing difficulties of certain enterprises, and to tighten up lending extended to the enterprises in highly energy-consuming, heavily polluting and overcapacity industries.
The PBC would further advance the financial reform and innovation, and reinforce risk management, in order to enhance the financial enterprises capability in fending off risks.
Mr. Zhou Xiaochuan, Governor of the PBC and Chairman of the Monetary Policy Committee chaired the meeting. Other Committee members present at the meeting included Mr. Li Yong, Mr. Su Ning, Mr. Yi Gang, Mr. Liu Mingkang, Mr. Shang Fulin, Mr. Wu Dingfu and Mr. Jiang Chaoliang. Mr. You Quan, Mr. Zhu Zhixin, Mr. Ma Jiantang, Ms. Hu Xiaolian and Mr. Fan Gang were absent from the meeting on business leaves. Presidents of the PBC Tianjin Branch, Shenyang Branch and Chengdu Branch also joined the meeting.
