PBC to maintain moderately loose monetary policy

Yesterday, at the Fifth Beijing International Finance Expo opening at the Beijing Exhibition Hall, nearly 130 financial institutions attended. Guo Qingping, assistant governor of People's Bank of China (PBC, China's central bank), stated at the opening ceremony that the central bank would maintain the moderately loose monetary policy , reasonably adequate liquidity, and enhance the sustainability of growing loans.

Australia's central bank rose the interest rate twice in a month, U.S. Fed decided to keep the interest rate unchanged yesterday. Guo said that global economy has began to stabilize, the main economic indicators have turned around and market confidence has been restored. However, global trade continued to shrink, protectionism of trade and investment increased, the recovery of major economies and financial systems remains slow, unemployment rates were still very high, fiscal deficit level was in danger, the impact of financial crisis was far from being eliminated, and world's economy would face uncertainties in the future. Hence, the central bank would continue to implement the moderately loose monetary policy. But he also expressed that it was necessary to adjust the relationship between economic restructuring and inflation.

Wang Zhihao, chief economist of Standard Chartered Bank, said yesterday that China had noticed the inflation issue as implementing the moderately loose monetary policy. It can be expected that regulators' loan guidance scope would be expanded towards the special industries. It was reported yesterday that China Banking Regulatory Commission (CBRC) had urged banks to control real estate development loans. Wang forecasts that the central bank will intensify efforts to control credits at the end of December and may raise the benchmark interest rate twice at the end of Q1 and in Q2 as the signal for regulation.

By People's Daily Online