The People’s Bank of China wrote an extensive commentary detailing its views about monetary policy and its commitment against excessive easing.
PBoC governor Yi Gang spoke of the nation’s need to prepare for a «mid and long distance race» while retaining conventional monetary policy for as much as possible.
«The world's economic downturn will likely stay for a long time,» Yi wrote in state magazine «Qiushi» alongside a commentary on the global history of monetary policy since the Great Depression. «We should stay focused and targeted, while not competitively lowering interest rates to zero or engaging in quantitative easing.»
Yi underlined the risk of excessive loosening due to reform delays and potential bubbles. In addition, he noted that economic development should not be assessed purely based on GDP growth but also on other factors such as the ability to maintain stable prices and control inflation.
