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Impact of Fed policies on China markets is limited: central bank official

BEIJING, Apr 1 (Reuters) – The stimulus measures implemented by the United States Federal Reserve in the past year and changes in its monetary policy that it may apply in the future will have a limited impact on China’s financial markets, he said. Thursday a central bank official.

“The positive effect of the normal monetary policy strategy in China is emerging,” Sun Guofeng, head of the monetary policy department of the People’s Bank of China (PBOC), told a news conference.

Sun added that PBOC policies have returned to normal after China’s coronavirus epidemic was brought under control in May.

“The next step is to keep our own affairs in order and we must maintain a stable monetary policy,” he said.

China will keep the yuan exchange rate basically stable at a reasonable level, intensify prudent management of cross-border capital flows, and guide market expectations.

It is also necessary to keep China’s benchmark interest rate for corporate and domestic loans, the loan prime rate (LPR), at an appropriate level, Sun said, in order to anchor the money supply. The PBOC held the LPR stable for the eleventh consecutive month in March.

Wang Xin, director of the central bank’s consulting and analysis office, said at the same press conference that the People’s Bank of China has launched a digital currency research pilot program with monetary authorities in Hong Kong, Thailand and the United Arab Emirates. .

(Reports by Stella Qiu, Cheng Leng and Tony Munroe. Edited in Spanish by Marion Giraldo)

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