MNI POLICY: Prudent Policy to Be Appropriately Flexible: PBOC

     BEIJING (MNI) - The People's Bank of China (PBOC) will keep a prudent

monetary policy appropriately flexible this year, the central bank said on

Sunday following its annual work meeting.

     In the statement, PBOC said its 2020 work guidelines are also to:

     - step up countercyclical adjustments to keep liquidity reasonably ample

and the growth of credits and social financing in line with economic

development;

     - deepen interest rate market reform and continue loan rate liberalization;

     - continue support for banks to recapitalize through measures including

selling perpetuities;

     - pursue reserve ratio cuts for targeted financial institutions to

effectively boost financing to small companies;

     - let the market play a decisive role in setting the yuan exchange rate and

keep the currency stable in a reasonable range.

     At the same meeting, the State Administration of Foreign Exchange, a bureau

under the central bank, said it will liberalize the capital account orderly and

support the liberalization of the financial market.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

[TOPICS: M$A$$$,M$Q$$$,MI$$$$,MBQ$$$]