(Yicai Global) March 9 -- China’s broad money reserves remain very sizable and the country will adjust monetary and foreign exchange policies this year to reduce its reliance on stimulus measures to spur economic growth, the head of the central bank said.
China aims to adjust the focus of economic expansion toward more quality growth, Zhou Xiaochuan told reporters at a press conference for the 13th National People’s Congress in Beijing.
The People’s Bank of China head said it is a positive sign that amid a worldwide economic recovery many countries have tightened loose monetary policies that followed the global financial crisis. He said this indicates that an era focused on boosting economic growth with low interest rates has drawn to a close.
In terms of China’s overall debt level, Zhou said the leveraging ratio is stable and the country has taken step-by-step measures to reduce it.
China’s lending rate increased by 0.4 percent point in late 2017, said PBOC Deputy Governor Yi Gang who was also speaking at the press conference, adding that this shows actual interest rates remained stable and consistent with economic trends. China’s liquidity supply also remained balanced.
When asked if China could raise interest rates following rate hikes in the US, Yi said monetary policy is based on China’s economy and financial situation and the central bank would consider different factors. The flow of cross-border funds is balanced and the country will continue to boost the stable conversion of the capital account while preventing risks, he added.