In a Sept. 16 Qiushi article, PBOC Governor Pan Gongsheng said China will
continue transforming its monetary policy framework to build a scientific,
stable system. The central bank will optimize intermediate monetary variables
and de-emphasize quantitative targets—especially single-channel loan
targets—treating financial aggregates mainly as observational, reference and
forward-looking indicators. Pan said policy will shift toward price-based tools:
improve market-based interest-rate formation, transmission and short-end rate
control; refine policy rates and supporting institutions to strengthen the
policy-rate role; and expand deposit and loan pricing options to provide more
loan-pricing benchmarks. He called for stronger execution and supervision of
interest-rate policy, measures to curb excessive industry competition and idleness
fund circulation, and institutionalized, credible routine policy communication
to guide market expectations.
