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MNI POLICY: China Won't Pursue Zero-Rate Policy: PBOC Head Yi

MNI (London)
By Archie Zhang
     BEIJING (MNI) - The People's Bank of China (PBOC) won't pursue a
zero-interest rate policy or quantitative easing, but will maintain normal
monetary policies for as long as possible, Governor Yi Gang said at the weekend.
     The central bank will stick to prudent monetary policy, implement
countercyclical adjustments and maintain "reasonably sufficient" liquidity, Yi
said in an article published online by Qiushi on Sunday.
     --FOREX
     The PBOC will continue to use structural monetary policies to improve
policy transmission mechanisms and step up support for small companies with
difficulties obtaining financing amid a period of deleveraging, Yi said.
     The PBOC has stopped "normalized currency intervention," Yi added. China
will keep the foreign exchange rate stable at a reasonable level and won't use
currency as a tool, he noted. 
--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MI$$$$,MGQ$$$]
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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