China central bank says financial system stable

[BEIJING] China's central bank said on Tuesday that the country's financial system was basically stable, and it would maintain a prudent monetary policy, while also lowering borrowing costs and increasing the portion of direct financing in social financing.

The current economic conditions are complicated and should not be underestimated, the People's Bank of China (PBOC) said in a statement published on its website.

The bank reiterated that it will continue to push forward with interest rate liberalisation and to keep the yuan exchange rate at a "reasonable level", without providing details.

The bank also repeated that it will maintain a prudent monetary policy and keep liquidity "appropriate".

REUTERS