Stabilization of Interest Rate to Be Maintained: PBOC CommitteeOn January 21, the Monetary Policy Committee of the People's Bank of China (PBOC) called in Beijing a regular meeting for the first quarter of 2001, and it is held that the current steady monetary policy has been proved successful and China is now enjoying a stable financial situation.In 2001, under the guidance of the Central Conference on Economic Work, we should continue to pursue a steady monetary policy and keep a moderate growth of money supply so as to maintain a favorable financial situation as we've seen up to now. And while restraining the deflation tendency, we must keep a close watch on the prevention from redundant construction and inflation. Measures already released for loans should be fully implemented with credit supervision strengthened to reduce the bad rates for loans and guard against financial risks. The Conference had a primary analysis and prediction of the financial situation and supported the presumable regulatory target for loans in the year of 2001 as proposed by PBOC. The conference came to a consensus that the interest rate for RMB deposit and loans must be kept stable and we should, under the leadership of the State Council, push forward steadily and carefully the market-oriented interest rate reform according to China's actual situation. By PD Online staff member Li Heng |
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