The Monetary Policy Committee (MPC) of the People's Bank of China, the central bank, said recently at a regular meeting that the central bank will improve the RMB exchange rate forming system and keep the RMB exchange rate basically stable.

At the regular meeting in the second quarter of 2005, the MPC said China's national economy continues a stable and rapid growth.

By using various monetary policy instruments, the central bank made a timing and proper control of monetary and credit aggregates and channel commercial banks to optimize the credit structure under the unified arrangements of the central government, said the MPC.

The current overall financial state runs stably, said the MPC.

As for the direction and measures for currency policy in the next phase, the MPC said a stable currency policy is prefered.

It required to enhance a prospective, scientific and effective macro-economy control and said that while controlling investment in fixed assets, to expand the domestic consumption to rationalize the ratio of investment to consumption.

The MPC emphasized a stable advance of market-oriented reform for interest rate.

The central bank will make more efforts to nurture and develop the financial market, to boost financial reform, to advance a harmonious development between direct financing and indirect financing and to improve the conduction efficiency of the currency policy, said the MPC.

(Xinhua News Agency July 4, 2005)