Date
17 December 2017
The central bank will continue to promote a market-based exchange rate mechanism. Photo: Bloomberg
The central bank will continue to promote a market-based exchange rate mechanism. Photo: Bloomberg

Growth to slow as economic make-up shifts, PBoC says

China’s growth is likely to slow as the country restructures its economy and labor supply tightens, the People’s Bank of China said in its first-quarter monetary policy implementation report late Tuesday.

To ensure a healthy and sustainable economic growth, the government must speed up restructuring to promote reform and unleash more economic activity, the central bank said.

The country will retain a prudent monetary policy, and conduct timely and anticipatory finetuning of the economy, it said.

The central bank will continue to promote a market-based exchange rate mechanism, and strengthen the two-way fluctuations in the yuan, while maintaining the Chinese currency’s underlying stability at a reasonable and balanced level.

The PBoC also warned that price rises in the agricultural and services sectors were continuing to put upward pressure on inflation.

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