China to maintain current monetary, exchange rate policies

Oct. 6, 2009 (China Knowledge) - China will maintain its current policies with respect to the RMB exchange rate and will uphold a loose monetary policy, said Deputy Central Bank Governor Yi Gang on Saturday on the sidelines of the International Monetary Fund meeting in Istanbul, sources reported.

China has kept the value of the RMB about the same for the past year in spite of international pressure to let the currency appreciate, saying that it embraces a flexible exchange rate but values stability.

Yi's statements were in line with Premier Wen Jiabao's Sep. 30 speech as well as other official Chinese statements to the effect that China will pursue fast but stable growth.

Su Ning, vice governor of the People's Bank of China, on Jul. 29 said in a meeting in the bank's Shanghai-based headquarters that a proactive fiscal policy and moderately easy monetary policy are crucial for sustained economic growth, China Knowledge reported earlier.

China's gross domestic product grew 7.9% in the second quarter due to a surge in fixed-asset investment under the RMB 4-trillion government stimulus package announced last November. Updated GDP figures are due to be released on Oct. 22.