Stabilising prices remains top priority for China: central bank

August 13th, 2011 - 4:58 pm ICT by IANS  

Beijing, Aug 13 (IANS) The People’s Bank of China (PBOC), or the central bank, has said that it will continue to make stabilising prices a top priority of its macro controls in the remaining months of the year.

It will stick to its regulation stance and continue a prudent monetary policy, while focusing on supporting the transformation of the country’s economic growth pattern, the PBOC said Friday in a report summarising the implementation of its monetary policy in the second quarter.

It will closely monitor and study domestic and international economic situations and work to make the monetary policy more targeted, flexible and foresighted, reported Xinhua.

Efforts will also be made to cement regulation results that has been achieved and evaluate the policies’ current and desired effects through scientific manners, while properly handling relations among maintaining relatively fast economic growth, restructuring the economy and managing inflationary expectations, said the report.

The PBOC will also employ multiple monetary tools, including the interest rate, exchange rate, and open market operation, to check liquidity and keep the social financing at a reasonable level, it noted.

To manage inflationary expectations, the PBOC will properly use the monetary policies such as the interest rate to control the capital demand and investment savings, the report said.

It will continue to use dynamic regulation measures such as the reserve requirement ratio (RRR) to guide and encourage financial institutions to stay prudent and adjust their credit supplies.

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