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PBOC: China has no conditions for continuous inflation, deflation

Updated: Nov 18,2019 11:34 AM    CGTN

China has no conditions for continuous inflation or deflation as the government's macro policies are taking effect, the country's central bank said on Nov 16.

The domestic economy is facing downward pressure, and its internal growth momentum should be further enhanced, the People's Bank of China (PBOC) said in its latest quarterly policy report.

The central bank will step up counter-cyclical adjustments while staying away from using a deluge of stimulus policies, the report said.

It specifically rules out any kind of stimulation for the property market. It says the government will continue to implement long-term measures to stabilize housing prices, instead of a kick which might only have a short-term effect.

The PBOC also said efforts should be enhanced to prevent the spread of expectation for inflation.

The quarterly report says China is one of the few major economies maintaining a prudent stance, while monetary easing programs are being adopted globally to fend off financial risks.

The People's Bank of China also promised a stable RMB exchange rate to support cross-border trade and investment. It says a mechanism for the issuance of RMB bills in Hong Kong would continue to improve.

Domestically, the report says that China's central bank also plans to carry on with interest rate reforms, based on a shifting of the benchmark lending rate.

China's consumer price index, a main gauge of inflation, rose 3.8 percent year-on-year in October, while the producer price index, which measures costs for goods at the factory gate, dropped 1.6 percent year-on-year last month.