China’s monetary policy environment may be fraught with more uncertainties this year due to a complex situation in the domestic as well as global economy, the Economic Information Daily reported Monday, citing analysts. The People’s Bank of China said in a statement Friday after a work conference that it will maintain the current prudent monetary policy in 2014. However, it indicated that the policy could be more forward-looking, targeted as well as better coordinated. Lu Zhengwei, chief economist with Industrial bank, was quoted as saying that uncertainties in commodity prices, changes in monetary policies of developed countries, and shifts in capital flows will give more room to the Chinese central bank to fine-tune its monetary policies. Wen Bin, an economist with Bank of China, proposed a reduction in the bank reserve requirement ratio at an appropriate time to curb systemic risks.
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