At a Sept. 10 press briefing, PBOC Vice Governor Lu Lei said monetary stability
and financial stability remain the central bank’s core objectives and require an
efficient, stable dual-pillar framework of monetary policy and macroprudential
management. He called for a scientific, robust monetary policy system and a
comprehensive macroprudential framework, using countercyclical and cross-cycle
tools to keep total social financing and money-supply growth aligned with
economic growth and price expectations. Lu urged improvement of market-based
interest-rate formation, regulation and transmission, said the market should
play the decisive role in exchange-rate formation and advocated greater renminbi
flexibility while keeping the currency basically stable at a reasonable and
balanced level. He also flagged plans to expand central bank macroprudential and
financial-stability functions, broaden macroprudential coverage, enrich tools,
strengthen monitoring and evaluation, and bolster the financial-stability
framework to address risks in key areas.
