PBOC to focus on growth and yuan stability

Officials: Monetary policy to ensure ample liquidity in financial system

Maintaining currency stability and strengthening economic growth will be key objectives of the monetary policy this year, as flexible measures from the People's Bank of China, the central bank, will help maintain ample liquidity in the financial system, officials said on Thursday.

Though there is still room for lowering the reserve requirement ratio (RRR), or the cash set aside by commercial banks as reserves, to inject additional liquidity if necessary, the window is limited, said Sun Guofeng, head of the monetary policy department of the PBOC.

Monetary policies will stress on dampening inflation expectations, maintaining yuan stability and supporting economic growth, said Sun. China's consumer inflation increased by 2.9 percent in 2019, driven by surging pork prices.