Beijing: The Peoples Bank of China will maintain a prudent monetary stance to ensure policy remains stable in 2012 and improve its management of foreign-exchange, Governor Zhou Xiaochuan said.
The central bank will deepen financial reform, accelerate the development of financial markets, and strengthen and improve foreign-exchange management, Zhou said in a New Year message on the PBOCs website. Also yesterday, Caixin magazine quoted Zhou as saying that while the yuan is near equilibrium, the currencys trading band may widen to more than its current 0.5 per cent on either side of the central bank rate.
Expansion of the worlds second-biggest economy is slowing as global growth falters and the government maintains curbs on the property market to cool speculation and price gains.
The central bank may cut banks reserve requirements this month as a week-long Chinese New Year holiday increases demand for cash and Premier Wen Jiabao tilts his focus toward sustaining growth.