Given the current domestic and global economic situation, China plans to maintain a prudent monetary policy with more flexibility, the People’s Bank of China (PBOC) said on Monday in a statement after its quarterly meeting of the monetary policy committee.

With a close eye on changes in the capital market, various monetary policy tools will be employed to maintain moderate liquidity and realize a reasonable growth in credit and social financing, the committee announced.

The finance and credit structure will also be optimized, according to the statement.

The central bank additionally said it would reduce the fund-raising cost of enterprises by raising the ratio of direct financing. It pledged to deepen reform on the financial system.

China will keep the yuan exchange rate basically stable at a reasonable and balanced level by further promoting interest rate liberalization and reform of exchange rate regime.

Analysts believe that, compared to statements issued from the three previous quarterly meetings, the central bank put more emphasis on risk management in this cycle.