China to adjust monetary policies based on economic situations

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China will make appropriate adjustments to its macroeconomic policies, especially monetary policies, based on changes in economic situations, according to Yi Gang, governor of the People's Bank of China.

Efforts should be made to enhance counter-cyclical regulation, Yi said in an article published Monday in a financial journal on occasion of the 70th anniversary of the central bank's establishment.

"[The central bank] should always take maintaining economic and financial stability as an important goal, as the success of any financial reform cannot come without a sound economic and financial environment," Yi said.

When the economy gets overheated or when there are asset price bubbles, measures must be taken to ensure a "soft landing," Yi said.

"During an economic recession or when the economy suffers external impacts, timely measures must be taken to stabilize the financial market and boost public confidence," Yi said.

Meanwhile, the central bank will strike a balance among financial reform, development and stability, the governor said.

The central bank will develop the financial market, push forward financial reform and expand opening up while maintaining financial system stability, ensuring continuous financial services and forestalling systemic financial risks, Yi said.

Source(s): Xinhua News Agency