China's central bank injected 55 billion yuan (US$8.3 billion) into the money market on Tuesday to ease a liquidity strain. [Photo/Xinhua]
China's central bank injected 55 billion yuan (US$8.3 billion) into the money market on Tuesday to ease a liquidity strain. [Photo/Xinhua]

China can make policy adjustments with traditional monetary policy tools, including changes in interest rates and reserve requirement ratios, Yin Yong, assistant governor of the People’s Bank of China, said at a forum.

China's central bank injected 55 billion yuan (US$8.3 billion) into the money market on Tuesday to ease a liquidity strain. [Photo/Xinhua]
China’s central bank injected 55 billion yuan (US$8.3 billion) into the money market on Tuesday to ease a liquidity strain. [Photo/Xinhua]
Meanwhile, the country has not resorted to quantitative easing, unlike some developed economies, Yin said.

The ample room also comes from the fact that China’s economy is still developing at a medium-high pace, and inflation is steady at a historic average level, he said.

Last year, China’s economy expanded by 6.9 percent year on year, down from 7.3 percent in 2014. The consumer price index rose 1.4 percent, well within the government’s target of 3 percent.

Yin added that “prudent” is an accurate description of China’s current monetary policy, and being prudent is the objective of the central bank’s monetary policy.

In a quarterly meeting in March, the central bank reiterated that it will continue to implement the prudent monetary policy.

Source: Xinhua

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