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China central bank vows more policy coordination to maintain growth, forestall risks

China's central bank said Monday that it would strengthen coordination between monetary, fiscal and other policies to keep growth stable and forestall risks.

The People's Bank of China will continue its counter-cyclical adjustments while making monetary policy forward-looking and fine-tuned, it said in a statement issued after a quarterly meeting of the monetary policy committee.

Monetary policy should be "neither too loose nor too tight," while liquidity will be kept at a reasonable and ample level, it said.

The central bank will not adopt strong stimulus policies, it said.

The growth pace of M2, a broad measure of money supply that covers cash in circulation and all deposits, as well as that of social financing scale, should be commensurate with the growth in nominal GDP.

It will continue to deepen reform of the financial system and improve the "two-pillar" policy framework, which includes monetary policy and macro-prudential policy.

The central bank will steadily push reforms in key areas such as the interest rate and further improve the transmission mechanism of monetary policies, the statement said.

It will optimize financing and credit structure to better serve the private sector and the real economy.

The meeting also called for further financial opening-up and increased management and risk-control capabilities.

The central bank also said it would use a variety of monetary policy tools to keep the yuan stable at "a reasonable and balanced level."

(www.chinaview.cn 2019-04-16)