BEIJING--China's central bank said it aims to continue efforts to curb financial risks while also seeking to stabilize economic growth, as the world's second-largest economy is poised to report slowing growth for the first quarter of the year.
The country's monetary policy needs to be conducted in better coordination with fiscal policy, the People's Bank of China said in a statement after its quarterly monetary-policy meeting Monday.
The central bank said it intends to improve control of its money-supply spigot and plans to avoid "flood-irrigation" style stimulus, a traditional way for Beijing to support growth that leads to a large accumulation of debt.
While Beijing has rolled out measures to stem slowing growth, it has so far refrained from implementing expansive stimulus policies that could kick-start the economy but also add to the nation's debt overhang.
The PBOC also said Monday it intends to deepen such financial overhauls as interest-rate liberalization. The central bank also said it plans to expand revamps in the financial sector's supply-side structure in a bid to increase lending to small businesses.
The central bank said financial institutions would improve their services for small companies and the agricultural sector, and increase the vitality of market players. The PBOC also said it would further open up the financial sector in the wake of steps to allow more foreign investment.
The central bank's quarterly meetings are historically occasions for Chinese scholars and officials to discuss monetary policy and economic issues but--unlike those of the PBOC's Western peers--no monetary-policy decisions come out of them.