China to maintain prudent monetary policy, keep yuan stable

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China's central bank said on Thursday it would continue a prudent monetary policy and keep the yuan basically stable.

The People's Bank of China will strengthen counter-cyclical adjustments while making monetary policy more forward-looking, flexible and targeted, it said in a statement issued after a quarterly meeting of the monetary policy committee.

The prudent monetary policy should be "neither too loose nor too tight," while liquidity will be kept at a reasonable and ample level, it said.

File photo of the People's Bank of China./VCG Photo

It will continue to deepen reform of the financial system and improve the "two-pillar" policy framework, which includes monetary policy and macro-prudential policy, and further improve the transmission mechanism of monetary policies, the statement said.

It will optimize financing and credit structure so that the private sector will be better supported while the real economy will be better served.

The meeting also called for further financial opening-up and increased vitality and resilience in the financial sector.

The central bank said it would use a variety of monetary policy tools to keep the yuan stable at "a reasonable and balanced level".

China maintains stable economic development with resilient growth and balanced supply and demand, the statement said.

The exchange rate of the yuan, as well as its market expectation, remains generally stable, resulting in a stronger ability for the country to counter external shocks, the statement said.

Source(s): Xinhua News Agency