Monetary Policy Unlikely to Change

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Last updated at: (Beijing Time) Friday, January 25, 2002

Monetary Policy Unlikely to Change

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A banking expert has pointed out that China's current moderate monetary policy is unlikely to be changed as it is reasonable in the present situation, Beijing-based Economic Information Daily reported on Friday.

This year's money supply is expected to increase by 13 percent,not a big difference compared with 14.4 percent last year. The amount of loans issued last year and the amount estimated to be granted this year are both 1.3 trillion yuan.

Cai Haoyi, deputy director of the Financial Institute of the People's Bank of China (PBC), the central bank, advocated the government's monetary policy, saying that the general amounts of currency in circulation and credit are appropriate. He called it aconcrete indication of the steadiness of the moderate money policy.

China adopted the moderate monetary policy in the late 1990s inan effort to cope with the financial crisis in Asia, according to Cai. The policy has been proved compatible with the nation's basicsituation over the past four years, the expert stressed.

The central bank is obliged to prevent inflation, deflation andfinancial risks, as well, he noted.

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