China will stick to a normal monetary policy while keeping it stable and independent, a central bank official said Tuesday.
The policy aims to improve support for the real economy and create a suitable monetary and financial environment for the country’s high-quality development, Sun Guofeng told a press conference. Sun is head of the monetary policy department of the People’s Bank of China (PBOC).
The central bank will ensure that the growth of money supply and social financing matches nominal economic growth, supports the green development and technological innovation of small and medium-sized enterprises, and keeps social comprehensive financing costs stable with slight declines, Sun said.
China’s new yuan-denominated loans totaled 12.76 trillion yuan (about 1.97 trillion U.S. dollars) in the first half of this year, up by 667.7 billion yuan from the same period last year, central bank data showed Friday.
The shift of the U.S. Federal Reserve’s monetary policy has little impact on China’s monetary policy and financial market, considering its declining interest rate of 10-year treasury bonds, the two-way fluctuations of the yuan exchange rate, the stable operation of the financial market, and the steady and positive trend of China’s economy, Sun said.
The PBOC said Friday that the country would cut the reserve requirement ratio (RRR) by 50 basis points for eligible financial institutions from July 15 to support the real economy.
The RRR cut is a regular operation after the country’s monetary policy returned to pre-epidemic status.— Xinhua