• China aims for reasonable, balanced exchange rate
  • global markets arent stable yet
  • global market turbulence means China needs caution
  • China can speed up reform if global markets stabilize
  • will move to interest rate liberalization
  • wants to have policy rates to guide market rates
  • PBOC preparing 2 or 3 policy tools for short and mid term rates
  • other central banks have similar tools
  • interest rate liberalization can be completed in 2 years but depends on external conditions

Peoples Bank of China governor out on BBG