China will focus on maintaining stable monetary conditions while striking a balance between economic growth, price stability and risk prevention, according to the People's Bank of China (PBOC), the country's central bank.
On Friday, a quarterly report released by the bank's monetary policy analytical team said the country needs to handle the relationship between maintaining stable and relatively fast growth, adjusting the economic structure and managing inflation expectations.
While priority should be given to stabilizing growth, the government will continue with its prudent monetary policy, making it more targeted, flexible and forward-looking with more fine-tuning methods, the PBOC report said.
The government will maintain market liquidity at a reasonable level, as well as steady and reasonable growth in lending and social financing, by using combined monetary tools and improving the macro-prudential policy framework.
The government will also push forward market-based reform of interest rates, further improve the exchange rate formation mechanism of the yuan and make the currency more flexible in both directions.
China's central bank has lowered both banks' reserve requirement ratio and interest rates twice this year in a bid to buoy the slowing economy, which has been dragged down by global economic woes and equally weak domestic demand.
China's GDP growth slowed to 7.4 percent in the third quarter of the year, which marked a decline of seven consecutive quarters.
Copyright ©1999-2011 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
