A new global central bank monetary......>

CHINA PRESS: A new global central bank monetary policy framework that emphasizes

financial risk prevention is being formed, and so national monetary policies

will need to coordinate with macro-prudential policies to deal with the impact

of financial cycles in asset prices, bank lending and interest rates, Sun

Guofeng, the director general of the Research Institute of the People's Bank of

China, said on Tuesday at a financial forum hosted by the China Business News,

the newspaper reported. Global central banks must not only control short-term

interest rates but also long-term interest rates possibly through changes in

their balance sheets, Sun argued. Central banks need to prevent commercial banks

from operating risky businesses and need to maintain their policy credibility to

keep financial markets stable. Emerging economies need to normalize their

monetary policies, pulling back from easy monetary policies adopted to tackle

the effects of financial crisis, so as to keep the global economy and global

finance balanced as developed countries continue to normalize their monetary

policies in 2018, Sun said. (China Business News)