China pursued normal monetary policy without excessive stimulus – PBOC official

 

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China has pursued a normal monetary policy without excessive stimulus, which leaves room for further adjustment and coordination, said Ruan Jianhong, an official from the People’s Bank of China (PBOC) at a financial industry forum in Beijing on Friday.

Ruan noted that China’s monetary policy shall be adjusted across cycles, and maintain stable and moderate credit growth, as well as abundant and reasonable liquidity to support the development of the economy.

In the meantime, China will pay close attention to inflation at home and abroad and will avoid flood-like stimulus and excess liquidity, so as to keep domestic prices within a reasonable range, Ruan said.

China will continue to enrich and improve structural monetary policy tools and further deepen financial reforms and opening up and the interest rate reforms will further improve the mechanism of market interest rate formation and transmission to stabilize banks’ liability costs and lower corporates’ borrowing costs, he said.