China’s central bank said growth in the world’s second-largest economy is within a “targeted zone” and reiterated that it will fine-tune policy to ensure stable credit expansion.
The yuan’s exchange rate will remain “basically stable” and there are “relatively large uncertainties” in the global economy because of Europe’s debt crisis, the People’s Bank of China said today in a statement on its website summarizing a second-quarter meeting of the monetary policy committee.
Policy makers including PBOC Governor Zhou Xiaochuan are trying to maintain economic growth that may have decelerated for a sixth straight quarter as Europe’s turmoil crimps exports and domestic property restrictions curb the housing market. The central bank cut benchmark interest rates this month for the first time since 2008.
The PBOC said it will keep implementing a “prudent” monetary policy, enhance two-way flexibility of the yuan exchange rate and “steadily promote interest-rate liberalization.”