MNI BRIEF: China to Keep Flexible Money Policy, Stable Yuan

China's monetary policy will remain "flexible, precise, reasonable and appropriate" this year, Premier Li Keqiang said on Friday as he delivered his government work report. The yuan exchange rate will be "basically stable at reasonable and balanced levels," Li said.

Earlier this week, policy advisors had told MNI the central bank was likely now in a neutral policy phase.

Monetary authorities will further lower lending rates to the real economy and keep the macro leverage ratio stable, while policies will prioritize serving the real economy and balance recovery and risk prevention, Li said. The growth of M2 and aggregate financing to the economy will match normal growth, with adequate and reasonable liquidity, he said.