Nation
PBOC reaffirms moderately loose monetary policy
2009-Jul-30 12:02:15
China will continue its “moderately loose” monetary policy, the People’s Bank of China said on its website yesterday. This is is the central bank’s third confirmation that its monetary policy will remain unchanged in the last six days.
The PBOC also said that it would use open market interventions to control the amount of credit available rather than setting a national cap.
The announcement comes after a 5 percent plunge in Chinese stock market yesterday, the biggest daily loss within?eight months, as there are concerns that the PBOC would have to modify its monetary policies to reign in lending.
New loans in China in the first six months of this year totaled 7.37 trillion yuan, far above the PBOC’s target of 5 trillion.
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