(Yicai Global) June 27 -- China's central bank, will deepen market-oriented reform of interest rates and keep the yuan exchange rate basically stable at an appropriate and balanced level.

The move aims to promote steady and healthy economic development, the People's Bank of China said in a press release today.

PBOC's monetary policy committee needs to guard against and defuse financial risks, master the intensity and pace of risk disposal, stabilize market expectations, and ensure that systemic financial risks do not arise, it stressed at its regular second-quarter meeting this week, according to the statement PBOC posted on its website.

China's economy is developing soundly, and the yuan rate is generally stable, with its ability to withstand external shocks enhanced, the central bank stated. The rapid growth of the macro leverage ratio has mainly been curbed, and the prevention and control of financial risks has steadily advanced. 

The quality and efficiency of finance in serving the real economy has also gradually improved. Some deep-seated problems and prominent contradictions remain, though positive changes have occurred in structural adjustments in the domestic economic and financial areas. The international economic and financial situation is complex, with external uncertainties and destabilizing factors on the rise.

PBOC will further expand the high-level bidirectional opening up of the financial sector, enhance the capacity of economic and financial management and risk prevention and control under open conditions and enhance the ability to participate in international financial governance, it said.

The bank's monetary policy committee, the central bank's advisory body to set monetary policy, comprehensively analyzes the macro-economic situation and discusses the formulation and adjustment of monetary policy according to the objectives of national macro-regulation.

The committee holds a regular meeting each quarter.

Editor: Ben Armour