(Yicai Global) June 29 -- China's central bank has kept its first monetary policy meeting this year and explained its chosen policy for the foreseeable future in a document that resembles its predecessor.
A press release from the latest second-quarter meeting gave somewhat richer judgment on the domestic economic situation, while promising stable fundamentals for growth.
"The prudent and neutral monetary policy has achieved good results, structural deleveraging has advanced steadily, financial risk prevention and control have achieved initial results, and financial support to the real economy is relatively solid," PBOC said. "Domestic demand has increasingly stimulated the economy, dependence on foreign trade has decreased significantly, and the ability to cope with external shocks has been enhanced."
"Prudent monetary policy should be kept neutral, and should be tightened appropriately," the statement added, replacing last year's meeting's rhetoric of implementing a prudent and neutral monetary policy. "Efforts should be made to maintain reasonably ample liquidity and guide the rational growth in the scale of monetary credit and social financing," PBOC said.
In accordance with the requirements of deepening supply-side structural reform, efforts should be stepped up to optimize the financing structure and credit structure and improve financial service entities' economic capabilities, PBOC said, adding a new bit about expanding financial opening to the outside actively and efficiently, and enhancing the vitality and resilience of the financial industry.
Editor: Emmi Laine