China to intensify liquidity management
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A statement of China's central bank said Wednesday that the country would continue using multiple monetary policy tools to enhance liquidity management and guide the money and credit growth back to normal.
The statement by Hu Xiaolian, a deputy governor of the People's Bank of China (PBOC), said the country is facing challenges to achieve this year's target of keeping the new lending under 7.5 trillion yuan (1.13 trillion U.S. dollars).
The PBOC urged the country's financial institutions to better manage the pace and scale of credit supplies for the rest of the year.
According to the PBOC statistics, China's new lending has totaled 6.89 trillion yuan in the first 10 months of the year.
China was experiencing continuous capital inflows on speculation of yuan appreciation, Hu said. "This does not only push up domestic commodity and asset prices, but also makes the liquidity management more difficult."
She further noted that the central bank would continue efforts to balance the relationship between ensuring stable and relatively fast economic growth, restructuring the economy and managing inflationary expectation.
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