(Yicai Global) April 22 -- The primary task of China’s monetary policy is to maintain price stability, according to Yi Gang, governor of the People’s Bank of China.

“Stable prices are inseparable from the support of monetary policy and the stability of the real economy,” Yi said at the Boao Forum for Asia today.

 The PBOC has always ensured the growth of monetary supply and the expansion rate of social financing basically match the nominal economic growth rate, while maintaining the market interest rate within a reasonable range, he added.

“Food production and energy supply are very important for price stability this year,” Yi said, adding that China has now basically achieved food self-sufficiency. “Prices will be stable within a reasonable range as long as food production and energy supply are guaranteed.”

Financial services should attach great importance to agricultural production as well as the production and import of important energy supplies such as coal, crude oil and natural gas, he pointed out.

“China will continue to implement a prudent monetary policy, and will comprehensively use a variety of tools to provide more help for micro, small and medium-sized enterprises, and increase support for the real economy,” Yi said.

In response to recent fluctuations in China’s financial markets, he noted that the increase in stock market volatility is not only due to external factors but also internal factors such as sporadic Covid-19 outbreaks and the downward pressure on the economy.

In the face of these challenges, China’s monetary policy has been laid out in advance, and the prudent policy has strengthened support for the real economy, according to Yi.

Editors: Tang Shihua, Peter Thomas