11 Feb 2015
We’ll pay attention to avoid 'pumping out' too much money - PBOC
FXStreet (Mumbai) - The People's Bank of China (PBOC), the country's central bank, confirmed in its Q4 policy report that it will maintain a prudent monetary policy to support China's economy, but, at the same time, ensure that its measures are well balanced.
The PBoC said in its report, "We will make appropriate and timely adjustments when there are relative big changes in basic conditions...to prevent the economy from sliding, but also pay attention to avoid 'pumping out' too much money,"
"The economy still faces relatively big downward pressure amid the process of economic restructuring,"
"Looking ahead, it's hard to see any big improvement in external demand. Some industries with excess capacity are still increasing capacities at a great speed, which could increase downward pressure on prices, especially industrial prices."
The central bank has eased its policies twice in the last three months, including cutting key interest rates as well as reducing the required reserve ratio, the amount of deposits that banks must hold as reserves.
The PBoC said in its report, "We will make appropriate and timely adjustments when there are relative big changes in basic conditions...to prevent the economy from sliding, but also pay attention to avoid 'pumping out' too much money,"
"The economy still faces relatively big downward pressure amid the process of economic restructuring,"
"Looking ahead, it's hard to see any big improvement in external demand. Some industries with excess capacity are still increasing capacities at a great speed, which could increase downward pressure on prices, especially industrial prices."
The central bank has eased its policies twice in the last three months, including cutting key interest rates as well as reducing the required reserve ratio, the amount of deposits that banks must hold as reserves.