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China Central Bank to continue prudent monetary policy
October 5, 2014, 4:31 pm

the world's second-largest economy is still faced with complicated situations, said the People's Bank of China [Xinhua]

The world’s second-largest economy still faces “complicated situations”, said the People’s Bank of China [Xinhua]

China will continue its prudent monetary policy, flexibly use monetary instruments and maintain “moderate” liquidity to achieve reasonable growth in loans and social financing, the central bank said on Sunday.

After its monetary policy committee concluded its quarterly meeting, the People’s Bank of China (PBOC) said it will closely watch new developments in the domestic and international economy and finance as well as changes in international capital flows.

The Chinese economy is running within a “proper range” with prices remaining stable, but the world’s second-largest economy  still faces “complicated situations”, a PBOC statement said.

The International Monetary Fund last month said China’s economy will likely grow faster in 2015 than previous estimates. The global lender says the country’s growth will likely be “well above” 7 per cent next year.

The Chinese government has set an official growth target of 7.5 per cent for 2014.

Chinese authorities have ruled out major stimulus to fight short-term dips in growth, indicating the slowdown was an expected consequence of their reform drive.


Source: Agencies