China's central bank reiterates stability in monetary policy

BEIJING - China's central bank has reiterated that it will prioritize stability in its monetary policy and avoid making sudden shifts.

The prudent monetary policy will be more flexible, precise, reasonable and moderate, and will strike a balance between economic recovery and risk prevention, according to the 2020 Q4 monetary policy report released by the People's Bank of China (PBOC) on Monday.

It aimed to maintain liquidity at a reasonably ample level, with the growth of broad money supply and social financing basically matching nominal economic growth, the report said.

The PBOC will also keep the macro leverage ratio basically stable and flexibly adjust the intensity, pace and focus of the policy in light of changes in the situation.

It will give full play to the "drip irrigation" function of the structural monetary policy tools, while providing more financial support to technological innovation, small and micro-sized businesses, and green development, according to the report.