MNI BRIEF: PBOC To Add Policy Strength For Econ Goals - Pan

MNI (BEIJING ) - The People's Bank of China will intensify its policy efforts and maintain ample liquidity to lower funding costs, while preparing incremental measures and coordinating with fiscal polices, Governor Pan Gongsheng has told Xinhua News Agency.

The Bank will maintain an accommodative stance, expedite the implementation of already introduced measures, and keep the yuan stable at a reasonable level, he said, noting policy tools will place greater emphasis on price-based facilities over quantitative ones. (See MNI: PBOC Eyes Lower Rate For GDP Target, RRR Cut Optional)

The central bank will emphasise price stability and moderate inflation as key considerations, which will drive prudent policy to avoid dramatic expansions or contractions, Pan added. The PBOC will carefully balance growth and risks to support the economy and ensure the health of financial institutions, he continued. (SeeMNI PBOC WATCH: PBOC Cuts 7-Day Rate As Reconfigures Framework)

He added the central bank will strengthen macro-prudential management and mitigate risks within local-government debt, real estate, and small to medium-sized banks. The PBOC will encourage financial institutions to increase credit support for key and weaker sectors, and more targeted efforts will be made to meet reasonable consumer financing needs. 

The Bank will also steadily advance the internationalisation of the yuan, while efforts will be made to enhance the facilitation of cross-border trade and investment, the governor said.