China's monetary policy driven more by domestic factors
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Chinese monetary policy is driven more by domestic factors than by external ones, said Zhou Xiaochuan, governor of the People's Bank of China, or the central bank, on Monday.
"With a population of 1.3 billion in the country, most of major factors that need to be considered are domestic ones, although the economy is export-oriented," Zhou told a news briefing on the second round of the China-U.S. Strategic and Economic Dialogues.
International factors influenced decision-making, but the impact was usually smaller, he added.
Zhou said officials from China and the United States touched upon how the European sovereign debt crisis had impacted on yuan's exchange rate during the dialogues, but did not go deeper.
China and the United States supported the measures that the European countries had taken to manage the sovereign debt crisis, Zhou said, adding generally speaking the world economic recovery would maintain its momentum.
Zhou also said he expected financial institutions to continue to deal with the financial crisis. China would prevent "blind" and "irrational" moves in the financial market while further promoting financial innovation, he said.
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