(Yicai) Dec. 29 -- The People’s Bank of China added the private economy to the programme of its most recent monetary policy meeting, saying that it will continue to provide financial services to support the development of the private economy.

China's central bank will also focus on funding for technology, green energy, inclusive finance, pensions and the digital sector, according to the report from its regular quarterly meeting held on Dec. 27 that was posted on its website yesterday. None of these areas were mentioned in its last meeting in the third quarter.

Global inflation is showing signs of slowing down, the PBOC said, when in the previous quarter it had said that inflation was still high.

Much of the rest of its message was in line with its third quarter report. Global economic and trade investment is slowing, it said. The PBOC should revitalize financial resources that are inefficiently occupied and improve the efficiency of fund use.

The central bank will make a greater effort to implement existing monetary policies to maintain adequate liquidity, guide credit to grow reasonably and keep the scale of social financing and money supply in line with economic growth goals, it said.

The PBOC will improve the formation and transmission of market-oriented interest rates to give full play to the guiding role of benchmark interest rates, ensure that the loan prime rate reform and the market-oriented adjustment mechanism of deposit yields work, and drive down the costs of corporate financing and household loans, it said.

The PBOC should guard against the risk of the exchange rate overshooting to prevent the formation of unilateral expectations and to maintain the yuan exchange rate at a reasonable and balanced level, it said.

It will guide large banks to shift their focus to customers in county-level areas, assist small and medium-sized banks to perform their main businesses well and help lenders to replenish their capital so as to safeguard the stable development of the financial market.

Editor: Kim Taylor