PBOC vows prudent policies in 2015

China's central bank on Friday 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.

Various tools should be used flexibly to maintain the reasonably rich liquidity in the bank system. Lending and private financing should grow in a steady and moderate way. Macro-control measures in a targeted approach will be continued and lending support will be given to key or vulnerable links, said a statement on the PBOC website.

The central bank will strengthen support for the real economy and cut fund-raising costs.

Financial reforms will be boosted, including reforms on interest rates, the yuan exchange rate formation system and foreign exchange management.

More efforts will be spent on promotion of cross-border use of the yuan.