The MonetaryPolicy Committee of the People’s Bank of China (PBC) held its fourth quarterlymeeting of 2004 in Beijing days ago.
It was agreed thatsince the beginning of 2004, the Chinese economy has maintained the rapid andsound growth momentum. In line with the policy instructions of the CPC CentralCommittee and the State Council, the PBC continued to implement the soundmonetary policy, strengthened and improved financial management, kept monetaryaggregates under proper control and optimized credit structure. In general,policy measures have achieved preliminary effects, as evidenced in the moderategrowth of money and credit and sound performance of the financial industry
The Committeeconducted an in-depth analysis of domestic and international economic andfinancial development. It was concurred that the principles mapped out at theCentral Economic Work Conference should be implemented fully and a scientificapproach should be applied to economic development. Financial macro adjustmentshould be further improved to promote a steady and rapid economic growth aswell as price stability.
The Committeediscussed monetary policy stance and measures in the coming period. It wasstressed that the sound monetary policy should be continued and theforward-looking, scientific and effective approach to macro financialmanagement further strengthened. Various policy instruments should be adoptedto manage the liquidity of the financial system in a timely and appropriatemanner. Market-based interest rate reform should be steadily advanced. Renminbiexchange rate formation system should be further improved, and the exchangerate be maintained basically stable at an adaptive and equilibrium level topromote the balance of international payments. Efforts should also be made tospeed up the reform of financial institutions, encourage financial innovations,improve financial services, develop financial market, promote a coordinated growthof direct and indirect finance, and increase the effectiveness of monetarypolicy transmission.
Themeeting was chaired by Mr. Zhou Xiaochuan, Governor of the PBC and Chairman ofthe Monetary Policy Committee, and joined by other Committee members includingMr. Li Yong, Ms. Wu Xiaoling, Mr. Li Ruogu, Mr. Li Deshui, Mr. Guo Shuqing, Mr.Liu Mingkang, Mr. Shang Fulin, Mr. Wu Dingfu and Mr. Xiao Gang. Among theabsentees, Mr. You Quan presented his written opinions. Presidents of the PBCShanghai Branch and operations office in Chongqing also attended the meeting.
