China’s central bank reiterates restraint from strong stimulus

BEIJING — China's central bank has reiterated that it would not use a deluge of stimulus policies to buoy up the economy.

The prudent monetary policy will be eased or tightened to the right degree and the valve on aggregate monetary supply will be well controlled, the People's Bank of China (PBOC) said in a statement after a quarterly monetary policy committee meeting.

Increases in M2 money supply and aggregate financing will keep pace with nominal GDP growth, the statement said.

The Chinese yuan exchange rate is generally stable and posting stronger capability to deal with external challenges. Initial success was also made in curbing the rapid growth of macro leverage rate.

The PBOC will improve services for small enterprises, agriculture, rural areas and farmers, according to the statement.