China targets 2007 M2 growth of around 16 pct - PBoC |
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Sun, 21 Jan 2007 14:30
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BEIJING (XFN-ASIA) - The People's Bank of China said it is targeting M2 money supply growth of 16pct this year, matching its 2006 goal.'The growth target of M2 money supply is around 16 pct given the consideration of expected GDP growth at around 8 pct and CPI growth of no more than 3 pct in 2007,' the central bank said in a statement on its website late Sunday.China's M2 grew by 16.94 pct at the end of last year, compared with central bank's 16 pct target. The central bank didn't give a target for new loans growth in 2007 as it has done in previous years.The central bank also pledged in the statement to further improve foreign exchange reserve management, deepen foreign currency management reform and enhance the adjustment of foreign exchange policy.'The PBOC will enhance management of cross border capital flows, especially short-term capital flows, strictly control short-term debt and support banks and companies to fully utilize domestic foreign currency resources,' it said.'The central bank will focus on enhancing liquidity management in 2007 and continue with prudent monetary policy, using a combination of monetary policy tools to promote fast and stable economic growth,' it added.The PBOC also reiterated its intention to push forward interest rate reform, flexibly use interest rate tools and gradually let 'price levers' play their role in monetary policy control.It added that it would 'further allow market demand and supply to play a fundamental role in setting the yuan exchange rate, improve managed floating exchange rate system, increase yuan exchange rate flexibility and maintain a basically stable yuan at a reasonable and balanced level'.The PBOC also said that it will speed up the development of the foreign exchange market, improve the trading mechanism in the interbank market, adding more product.
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China end-Dec M2 up16.94 pct yr-on-yr - central bank - UPDATE 