BloombergSenior People’s Bank of China officials pushed back against interpretations of its recent moves as signaling significantly looser policy, emphasizing that monetary policy remains prudent — although it would be more targeted and flexible. “The stance on prudent monetary policy has not changed, but it will be more appropriate in tightening or loosening, because the situation is complex, and policy reactions should be more forward-looking, flexible and targeted,” Monetary Policy Department director Sun Guofeng (孫國峰) told reporters in Beijing on Friday. China’s top leaders have pledged to keep monetary policy prudent while striking an “appropriate” balance between tightening and loosening next year, dropping the “neutral” description. Growth is still in a reasonable range, but there are “worrying aspects,” said Ruan Jianhong (阮健弘), head of the central bank’s research and statistics department. “We’ve realized that guiding market expectations requires more transparency,” and the central bank will also step up communication with financial institutions during the policymaking process, central bank spokesman Zhou Xuedong (周學東) said.

Source: Taipei Times December 29, 2018 15:56 UTC