BEIJING: China central bank said it will continue with its prudent monetary policies in 2015 with better coordination of tight and loose monetary measures and proper fine-tuning.
The central bank will adapt to China’s economic “new normal” of slower growth but higher quality and highlight industrial transformation and restructuring, said the People’s Bank of China (PBOC) at a meeting on its work in 2015.
You might also like
The central bank will strengthen support for the real economy and cut fund-raising costs, said a statement on the PBOC website.
Zeng Gang, researcher with Chinese Academy of Social Sciences, said monetary policy should support the real economy and structural adjustment amid increasing downward pressure.He expects more liquidity in 2015.The growth of M2, a broad measure of money supply that covers cash in circulation and all deposits, slowed to 12.3 percent on a year-on-year basis by the end of November.Economic growth can not rely on money supply,” Guo Tianyong, professor of Central University of Finance and Economics, “but policies with better coordination of tight and loose measures can stabilize the economy.”
The meeting said various tools should be used flexibly to maintain the reasonably rich liquidity in the bank system.
The PBOC implemented new tools to tackle changing situations in 2014, including Medium-term Lending Facility (MLF) and Pledged Supplementary Lending (PSL).
