China to Continue Moderately Easy Monetary Policy, Boost Yuan Exchange Rate Flexibility: Central Bank

BEIJING, Sept. 29 (Xinhua) -- China will continue to implement a moderately easy monetary policy while making it more targeted and flexible, the People's Bank of China (PBOC), China's central bank, said Wednesday.

The bank also pledged to further improve the formation mechanism of the yuan exchange rate, to increase its flexibility, according to a statement posted on the bank's website after the quarterly meeting of the bank's monetary policy committee presided over by PBOC governor Zhou Xiaochuan.

China's economy is in "good shape," and it is well on track to meet the government's macro-control targets, the statement said.

But the country still faces the tasks of maintaining steady and rapid economic development, restructuring its economy and controlling inflation, the statement added.

The bank also noted that the global economy is gradually recovering but that it still has structural problems and that it faces risks.

The government will keep the consistency and stability of macro-economic policy while making it better-targeted and more flexible.

The bank will also closely follow developments in the global economy while maintaining an appropriate growth rate in lending, the statement said.

China's yuan has appreciated in value against the U.S. dollar amid increased volatility since the central bank announced on June 19 it would increase exchange rate flexibility.

The central parity rate of the yuan rose 115 basis points, or 0.17 percent, Wednesday to a new record high at 6.6936 per U.S. dollar, according to China Foreign Exchange Trading System data.