PBOC continues prudent policy
(3 June 2011 – China) The People’s Bank of China (PBOC) has released an economic report stating that China’s central bank will continue implementing prudent monetary policy to strike a balance between inflation and economic growth this year.
The report reiterated the central bank's stance that it will maintain a reasonable money supply and enhance its capital support to some strategic new industries and energy saving industries.
It said generally the domestic environment would allow China to maintain a relatively fast and stable economic growth.
The central bank warned of the uncertainties in the global economy – unresolved sovereign debt crises and loose monetary policies in some major economies, were adding pressures to emerging markets and global liquidity.
'The fluctuation of global commodity prices and major currency exchange rates has accelerated this year, and inflation pressure is increasing in emerging markets,' the report said.
The report said PBOC will further tighten its credit supply to energy-intensive industries and industries with overcapacity.
It said generally the domestic environment would allow China to maintain a relatively fast and stable economic growth.
The central bank warned of the uncertainties in the global economy – unresolved sovereign debt crises and loose monetary policies in some major economies, were adding pressures to emerging markets and global liquidity.
'The fluctuation of global commodity prices and major currency exchange rates has accelerated this year, and inflation pressure is increasing in emerging markets,' the report said.
The report said PBOC will further tighten its credit supply to energy-intensive industries and industries with overcapacity.
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