China's Monetary Policy Needs Fine-Tuning, PBOC Governor Says
China Daily
DATE:  Dec 04 2018
/ SOURCE:  yicai


(Yicai Global) Dec. 4 -- The Chinese monetary policy must be fine-tuned in a flexible and moderate way to meet the changing economic conditions and to counterbalance the cyclical pressures on the economy, China's central bank governor said via the lender's official publication.


When the economy is overheated or asset price bubbles emerge, proper tools should be employed to gradually tame down the potential risks and achieve a "soft landing," Yi Gang wrote in the article in that was published in China Finance yesterday.


When facing an economic slowdown or external shocks, monetary policy should react immediately to stabilize the financial market and strengthen public confidence, the governor of the People's Bank of China said.


"To maintain economic and financial stability is always the important target [of monetary policy]," said Yi, who also pledged the country to deepen its financial reform and further open its financial markets to foreign investors.


The bottom line, according to Yi, is to ensure the continuous development of the policy to prevent risks. "Financial opening-up should never stop," he said.


Liberalization has facilitated financial reforms, such as the inclusion of the Chinese yuan in the International Monetary Funds' special drawing rights basket, Yi said.


China needs to improve its macroeconomic policy to better match the country's status as an issuer of a global reserve currency and to enhance the international community's confidence in the Chinese yuan, he added.


Editor: Emmi Laine 

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