I posted some of the headlines from People’s Bank of China (PBOC) governor Zhou earlier (here) – just following up with a little more detail:
Zhou said “Chinese economic growth is stabilizing and improving and major economic indicators are within a reasonable zone. Both inflation and employment conditions are stable. Monetary policy is appropriate and credit growth is also within a reasonable zone.”
Said China is the first to recover from the financial crisis because of the government’s timely measures
- He said balancing policy choices to ensure job growth is key
- Growth slowed in the first half
- The government has chosen to use market-oriented reforms to the maintain growth rate rather then easing monetary policy – the policies have achieved the desired effect
- Zhou repeated that “the government will further improve yuan formation mechanism, widen the yuan trading band in an orderly fashion and let market forces to decide the yuan equilibrium.”
- The PBOC will gradually exit from its regular forex market intervention.
- Zhou also reiterated the intention to speed up interest rate reform and opening up of the capital account.
From a a speech at a financial forum on Tuesday. More.
