adminSpeaking on a visit to the headquarters of the People’s Bank of China, Wen called on the central bank to push financial reform and use monetary policy to support the economy, the government said in a statement late on Monday.
“Financial work is still facing a severe and complicated domestic and overseas environment. We must make full use of monetary policy for the economy to realise continued healthy development,” Wen said, adding prices should be kept stable.
China’s economy, the world’s second largest, expanded 7,8 percent last year in the face of weakness at home and in key overseas markets.
The central bank last cut interest rates in July last year, and has instead used its open market operations to boost liquidity to support the economy as growth flagged in the second half. Last week, the central bank said it would start carrying out short-term operations to manage liquidity in the money market, which analysts say will give policymakers more flexibility.
Wen called for more financial reforms, including the long-held goals of further liberalising interest rates and making China’s yuan currency freely convertible, but gave no details of such moves. – AFP.
Online Reporter