PBOC needs to find balance
By Feng Jianmin |
October 27, 2011, Thursday
|
Print Edition
Print Edition
CHINA'S central bank will introduce flexible and more targeted monetary policies as it balances fighting inflation and maintaining economic growth, echoing Premier Wen Jiabao's comments that the government will fine-tune its policy to keep the economy strong.
"On one hand, the trend of China's economic growth hasn't changed largely, so the general tone of China's fiscal and monetary policy does not change," the People's Bank of China said on its website yesterday, quoting comments by Governor Zhou Xiaochuan.
"But we should be cautious of the unexpected, or worse-than-expected, global economic situation. At such times, the monetary policies should remain fully flexible and pertinent," he said.
The comments were posted a day after Wen pledged a "fine-tuning" of the government's macro-economic policies and maintaining a "reasonable" credit growth after data showed a moderation in economic expansion and an easing in inflation.
The PBOC lowered the interest rate for its three-year bill issued last week, a signal analysts saw as a sign of easier monetary policies.
But Zhou said China will still "closely watch" inflation when it closely monitors economic growth.
Tang Jianwei, a senior analyst at the Bank of Communications, said the basics of the policies have not changed, but the "degree of tightening is starting to ease."
"On one hand, the trend of China's economic growth hasn't changed largely, so the general tone of China's fiscal and monetary policy does not change," the People's Bank of China said on its website yesterday, quoting comments by Governor Zhou Xiaochuan.
"But we should be cautious of the unexpected, or worse-than-expected, global economic situation. At such times, the monetary policies should remain fully flexible and pertinent," he said.
The comments were posted a day after Wen pledged a "fine-tuning" of the government's macro-economic policies and maintaining a "reasonable" credit growth after data showed a moderation in economic expansion and an easing in inflation.
The PBOC lowered the interest rate for its three-year bill issued last week, a signal analysts saw as a sign of easier monetary policies.
But Zhou said China will still "closely watch" inflation when it closely monitors economic growth.
Tang Jianwei, a senior analyst at the Bank of Communications, said the basics of the policies have not changed, but the "degree of tightening is starting to ease."
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