BEIJING — China’s central bank said on May 11 that it will properly implement the prudent and neutral monetary policy to create a moderate financial environment for supply-side structural reform and high-quality development.
The People’s Bank of China (PBOC) will find new ways for financial regulation, maintain policy continuity and stability, attach importance to guiding expectations, and keep liquidity at a reasonable level, according to the quarterly report released by the PBOC.
The PBOC will also push forward market-oriented reform for interest rates and exchange rates, improve its ability of regulating interest rates, make exchange rates more market-based, and keep the yuan’s exchange rates generally stable at a reasonable level around the equilibrium.
Efforts will also be made on financial reform and opening-up, develop inclusive finance, and allow finance to play a larger role in serving the real economy, supporting innovation and nurturing new sources of growth, the report said.
The PBOC will also enhance financial supervision and coordination in the campaign against major financial risks to forestall systemic financial risks, according to the report.