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PBOC to keep policy neutral, maintain liquidity
December 30, 2016, 12:21 pm

The PBOC will keep monetary policy "neither too tight nor too loose" [Xinhua]

The PBOC will keep monetary policy “neither too tight nor too loose” [Xinhua]

The People’s Bank of China (PBOC) has kept in tandem with pledges made during December’s Central Economic Work Conference and announced that its monetary policy will remain neutral and maintain sufficient liquidity.

The PBOC said liquidity will remain stable through a number of fiscal policy tools

“At present, China’s economic and financial operations are generally stable, but the complexity of the situation cannot be underestimated,” the PBOC said in a statement.

This is in line with the supply-side reform proposals made during the Conference which ended on December 16.

A statement released at the conclusion of the two-day Conference said that “monetary policy-making should adapt to changes in the use of money supply tools, and further efforts are needed for smoother transmission of policy”.,

China will keep the yuan stable, while improving the flexibility of exchange rates, the statement added.

The yuan has for the past two years been in steady decline against the US dollar. At press time, the yuan was down 0.17 per cent to 6.994 to the dollar.

The BRICS Post with inputs from Agencies