China central bank to keep prudent monetary policy in second half

The headquarters of the People's Bank of China in Beijing. [Photo by Shi Yan/China Daily]

BEIJING - China's central bank said on Wednesday that it will continue its prudent monetary policy in H2.

The People's Bank of China (PBOC) will maintain an appropriate degree of flexibility and make timely pre-emptive adjustments.

The central bank will use various policy tools to maintain appropriate liquidity and reasonable growth in credit and social financing; improve financing and credit structures; and reduce social financing costs.

The bank reaffirmed that it would keep the yuan exchange rate basically stable at a "reasonable and balanced" level while improving the exchange rate formation mechanism.

The bank will assist precision poverty relief, continue financial system reform and market-oriented reform on interest rates.