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"Flood Irrigation" Off The Table - PBOC Governor

CHINA PRESS

The People’s Bank of China will not engage in "flood irrigation," or excessive money supply, for the next stage and continue to implement prudent monetary policy, according to Governor Yi Gang. Writing recently for Economic Research, Yi said the PBOC will continue counter-cyclical and inter-cyclical measures which take into account short-term and long-term economic growth and price stability. China must follow an interest rate and exchange rate policy according to market mechanisms which maintain economic and financial stability and curb systemic financial risks. Authorities will aim to promote a real interest rate that is about equal to the potential economic growth, and improve the exchange-rate system with reference to a basket of currencies, Yi said. (Source: 21st Century Herald)

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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