China to implement moderately loose monetary policy, launch measures to support economy

China's central bank said it will implement a moderately loose monetary policy this year, and introduce a combination of measures in support of economic development.

According to the People's Bank of China (PBOC), this year's monetary policy aims to bolster the real economy, prevent risks, and address constraints such as the interest rate gap between China and the United States and the interest rate gap between banks. The policy must be implemented at a reasonable speed and level.

"In light of changing situation, efforts will be made to keep the total amount, structure, interest rate, exchange rate and other aspects of monetary policy at a reasonable and balanced level, following the introduction of a policy combination," said Dong Ximiao, the chief researcher of Merchants Union Consumer Finance.

Industry insiders said that since the beginning of this year, the central bank has made many positive proposals for monetary policy in terms of total volume, interest rate, structure, exchange rate among others, which are conducive to further boosting market confidence.

In terms of total volume, there is still room to cut reserve requirement ratio, indicating that the central bank has the ability and willingness to increase macro regulation and support the real economy.

As for the structure, the central bank said it will study the creation of new structural policies, with a focus on supporting investment and financing for boosting scientific and technological innovation, promoting consumption and stabilizing foreign trade.

"Increasing financial support for major strategies, key areas and weak links will help promote smooth macroeconomic circulation, accelerate economic structural transformation and cultivate new growth drivers," said Wen Bin, the chief economist of China Minsheng Bank.

Regarding the exchange rate, the PBOC has reiterated that it will resolutely prevent the RMB exchange rate from overshooting, and has the experience, confidence and ability to maintain stable operation of the foreign exchange market.

The central bank said that it has sufficient reserve tools and policy space in the face of uncertainties in the macro environment, especially the external environment.

It said that many positive factors have underlined the improvement of the economic situation. With more proactive and effective macro policies continuing to take effect, it said, the financial system will provide more support for the recovery and improvement of the real economy and promote high-quality development.

China to implement moderately loose monetary policy, launch measures to support economy

More than 100,000 protesters descended on Serbia's capital, Belgrade, on Saturday in what is likely the largest anti-government demonstration in recent months.

The protests, sparked by a deadly train station roof collapse in November that killed 15 people, have grown into a nationwide movement against corruption.

Students from across the country joined the rally, accusing the government of negligence and demanding accountability.

Thousands of students from the University of Novi Sad arrived in Belgrade Friday evening.

They walked for two days in defiance of calls from the authorities not to come to the Belgrade protests.

Thousands of locals greeted them as police monitored their arrival amid fears that the weekend protests could turn violent.

However, students said that they were planning peaceful protests.

"These were and these are peaceful protests. We are not calling for any violence, as we never did so far. And we are not afraid," said Ivan Vladimir, a student.

Some Serbian political leaders including President Aleksandar Vucic have claimed that the student's protests are a smoke screen for a so-called colored revolution, an attempt to overthrow the government.

They warned any violence will be swiftly crushed.

"It is only our people who will decide who will govern the country through democratic elections, not crowds in the streets, and definitely not extremist political groups who are ready to use violence to advance their political cause," said Emanja Starovic, Minister for Labour, Employment, Veteran and Social Affairs.

But the tensions are present, particularly in Belgrade's city center, where many citizens joined the students.

In front of presidency, Vucic's supporters erected a makeshift camp a few days ago.

Hundreds of tractors were placed around that camp on Thursday evening to reduce the contact between the two opposing sides.

Riot police are also on hand hoping to prevent any contact between the two groups.

But that doesn't always work. Protesters deflated most of the tractor tires.

Protest organizers said they are expecting a quarter of a million demonstrators Saturday evening while the authorities have disputed that figure. The protesters urged people to remember the victims of the train station tragedy and demanded a answer to why it happened.

Over 100,000 protesters rally in Belgrade in response to railway station tragedy