Government and Policy

PBOC: China maintains moderately easy monetary policy in 2010

(Xinhua)
Updated: 2009-12-23 17:53

BEIJING: The monetary policy committee of China's central bank has reiterated the government's decision to maintain the moderately easy monetary policy in 2010 and improve the focus and flexibility of the policy according to circumstances.

The committee also agreed at a quarterly meeting that the government would manage the growth of credit increase next year to avoid big fluctuations in lending, according to a report posted on the website of the People's Bank of China Wednesday.

During the 2008 Central Economic Work Conference (CEWC), the annual economic planning meeting, the government decided to shift to the moderately easy monetary policy in 2009 to boost economic growth. The government decided at the 2007 CEWC to implement a tight monetary policy in 2008 to avoid overheating.

According to the central bank, China's new yuan-denominated lending in the first 11 months this year totaled 9.21 trillion yuan ($1.35 trillion), 5.06 trillion yuan more than the corresponding period last year.

The 13-member committee, headed by the bank's governor Zhou Xiaochuan, agreed that more financial support should be given to the transformation of the economic development pattern and adjustment of economic structure.

The committee also asked the country's lenders to firmly control loans to new projects, energy-consuming and polluting industries and those facing overcapacity.