(Yicai Global) Oct. 14 -- China’s inflation is moderate overall, the governor of the country’s central bank has said.

Yi Gang, who spoke by video link at the G20 meeting of finance ministers and central bank governors yesterday, also said China’s prudent monetary policy will be flexible, targeted, reasonable and appropriate, according to a statement posted on the website of the People’s Bank of China today.

China’s consumer price index, a key gauge of inflation, edged up 0.7 percent in September from a year earlier, the National Bureau of Statistics said today. That fell short of the 0.85 percent clip forecast by Yicai Global’s survey of chief economists.

But factory-gate inflation rose to a record high in September, climbing for a ninth month in a row, on surging energy costs. The producer price index jumped 10.7 percent, the NBS said, the biggest gain since it began compiling figures in 1996. The PPI had jumped 9.5 percent in August.

Sustainable Finance

At the G20 meeting held in Washington, it was pointed out that sustainable finance remains crucial for promoting the transition to greener economies and societies.

The finance ministers and central bank governors endorsed the G20 Sustainable Finance Roadmap and the 2021 Sustainable Finance Synthesis Report led by the PBOC and the US Treasury Department, and considered including biodiversity into the Finance Roadmap based on mutual agreement by G20 members in the coming years. 

All sides agreed to coordinate in response to climate change and environmental protection, and called for the need to act in synergy to promote low-carbon economic transition.

The PBOC, as co-chair of the G20 Sustainable Finance Working Group, will work with all parties to implement the Finance Roadmap, Yi said.

Divergent Recovery

The meeting recognized that the global economy is continuing to recover, but the recovery remains highly divergent and is exposed to downward risks, mainly due to the Covid-19 pandemic.

All members reiterated that they will use available policy tools to deal with the impact of the pandemic, and agreed to avoid any premature withdrawal of support measures on the basis of maintaining financial stability and long-term fiscal sustainability, as well as preventing spillover effects. 

Ministers and governors said that the use of global “stablecoins” should commence, in compliance with all relevant legal and regulatory requirements.

The meeting also emphasized the need for international organizations to continue deepening analysis of the potential role of central bank digital currencies in enhancing cross-border payments and their wider implications for the international monetary system.

The meeting also proposed strengthening the resilience of the non-bank financial intermediation sector, and agreed to ensure that the financial sector provides adequate support for the economic recovery while preserving financial stability. 

Editor: Tom Litting