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MNI: China New PBOC Head: To Continue Prudent Monetary Policy

MNI (London)
     BEIJING (MNI) - The most important task for the People's Bank of China is
to implement prudent monetary policy well, the new head of the central bank told
reporters on the sidelines of the meeting of National People's Congress Monday.
     Yi Gang, who was appointed governor of the PBOC earlier, said China also
needs to advance reform and the opening of its financial sector, as well as
maintain financial stability.
     His comments are in line with current central bank policies, indicating
continuity of the bank's monetary policy and financial regulation under the new
regime, as expected by financial markets.
     He said China will take measures to further reform and open the financial
sector, without giving specifics. But he told reporters more detailed policies
and actions will be announced at the coming Boao Forum for Asia in Hainan
Province, expected in early April.
     The National People's Congress officially voted Yi in as new central bank
head Monday, confirming overnight media reports.
     Under the leadership of Yi, the PBOC, dependent on the Communist Party
support, will be largely influenced by Liu He, the newly assigned vice premier
leading the economic development of the world's second largest economy. However,
as the head of a central bank which is increasingly powerful both at home and
internationally, Yi will likely exert substantial influence on the global
financial markets.
     --ZHOU PROTEGE
     Educated in the U.S. with a MBA from Hamline University in Minnesota and a
PhD. in economics from the University of Illinois, the protege of the
long-serving PBOC governor Zhou Xiaochuan is regarded as a pro-market economist.
     Back on Mar 9, Yi told a press conference on the sidelines of the NPC that
China's monetary policy should be based mainly on the domestic economy and
financial institutions.
     Yi, a 21-year PBOC veteran, will face a more complex domestic economic
landscape, with challenges including guarding China from potential risks of
capital outflow, curbing surging credit growth while maintaining stability of
economic growth, and further advancing the internationalization of the yuan.
While internationally, countering impacts of interest rate hikes by the Federal
Reserve and increasing trade conflicts with the U.S. will also be in Yi's inbox.
--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: M$A$$$,M$Q$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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