China will keep yuan basically stable, step up macro policy adjustments – PBOC

BEIJING (Reuters) -China’s central bank said on Friday it will step up macro policy adjustments, and implement prudent monetary policy in a precise and forceful manner.

The People’s Bank of China (PBOC) will continue to keep the yuan basically stable and guard against the risk of large exchange rate fluctuations, it said after the second quarterly meeting of its monetary policy committee.

The central bank said the current external environment was becoming more complex and trade and investment were slowing down, while inflation remained high.

The tightening effect of central bank policies in developed countries was continuing, and international financial market volatility has intensified, PBOC said in the statement posted on its website.

China’s overall domestic economy is improving and demand is recovering but with insufficient momentum, the central bank said.

Official data on Friday showed China’s factory activity declined in June for a third straight month, with weaknesses in other sectors deepening.

The cabinet said on Thursday it planned to take measures to promote household consumption. Earlier this month, China cut key lending benchmark rates to shore up economic activity.

During the meeting, the central bank also stated that it would promote the stable and healthy development of the real estate market.

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