Central bank's policies to be variable

BEIJING - Experts predict the Chinese central bank's monetary policy to be variable this year as both global and domestic markets face uncertainties.

The monetary policies of the Chinese central bank will differ from 2013 and will be variable instead of remaining linear, Lu Zhengwei, chief economist at the Industrial Bank, said in Monday's Economic Information newspaper.

Aside from uncertainties in global markets, domestic economic situations will also be volatile, as most forecast the economic growth rate in 2014 to be lower than that of 2013, said Zhao Qingming, a finance researcher.

The remarks followed a briefing issued on Friday following the 2014 work conference of the People's Bank of China, or the central bank.

In the conference, the central bank changed its wording for 2014 macro-control policies. The policies will be "more prospective, focused and coordinated," unlike the 2013 macro-control policy, which emphasized "maintaining policies' continuity and stability," according to the briefing.

Lu said that around mid-year 2014, China might fine-tune its monetary policy.

In response to tapering of quantitative easing by the US Fed, China's reserve requirements ratio might be lowered in 2014, according to Lu. A lower reserve requirements ratio means looser monetary policies.

China has kept a proactive fiscal policy since late 2008, when the country unveiled a 4-trillion-yuan ($654.7 billion) stimulus package to counter the impact of the global financial crisis. Its monetary policy has been prudent since late 2010.

China will publicize its economic performance on Jan 20. The country set its 2013 growth rate target at 7.5 percent.