Date
23 September 2017
Central bank chief Zhou Xiaochuan says China will stay the prudent monetary path. Photo: Bloomberg
Central bank chief Zhou Xiaochuan says China will stay the prudent monetary path. Photo: Bloomberg

China to stay on prudent monetary path, PBoC chief says

China will maintain prudent monetary policy as it tackles unprecedented complex economic conditions, central bank governor Zhou Xiaochuan said Tuesday.

“China’s economy has faced rare complexity in recent years, and we have an arduous task to stabilize growth, adjust the economic structure, deepen reform, prevent risks and benefit livelihoods,” Zhou was quoted as saying in a statement on the central bank’s website.

He said the central bank should create a good monetary and financial environment to deepen reforms and support development of the local economy.

The statement came as the People’s Bank of China drained 20 billion yuan (US$3.24 billion) from the money markets Tuesday through 28-day forward bond repurchase agreements.

It also comes against the backdrop of rising market expectations of policy easing to bolster economic growth.

Premier Li Keqiang said last week that the downside pressure for the nation’s economy is “relatively large” and pre-emptive fine-tuning policies will be adopted to increase liquidity for small companies, according to a statement on the government’s website Friday.

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JZ/JP/SK

Freelance journalist

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