BEIJING — China’s central bank said on Aug 3 that it will continue its prudent monetary policy in H2.

The People’s Bank of China (PBOC) will maintain an appropriate degree of flexibility and make timely pre-emptive adjustments.

The central bank will use various policy tools to maintain appropriate liquidity and reasonable growth in credit and social financing; improve financing and credit structures; and reduce social financing costs.

The bank reaffirmed that it would keep the yuan exchange rate basically stable at a “reasonable and balanced” level while improving the exchange rate formation mechanism.

The bank will assist precision poverty relief, continue financial system reform and market-oriented reform on interest rates.