The head of the Chinese central bank has emphasised the need to maintain prudent monetary policy and reasonable credit growth in 2018 during his new year’s message.
Zhou Xiaochuan said that PBOC has succeeded in strengthening macro-economic controls, deepening financial reform, preventing systemic financial risks and ensuring that the financial sector services the real economy.
According to Zhou PBOC will continue to maintain prudent monetary policy in 2018, as well as support reasonable growth in credit and lending.
Chinese analysts expect monetary policy to remain tight in 2018 as China forges further ahead with its financial deleveraging campaign, with observers forecasting continued single digit growth in the M2 money supply.
The remarks made by Zhou in his 2018 new year’s address follow PBOC’s announcement on Friday that it would commit to “prudent and neutral” monetary policy, as well as make recourse to policy tools to maintain stable liquidity.