In a report the National Development and Reform commission proposed prudent fiscal and monetary policies for next year.

As China has embarked on the way of restructuring its economy, the fiscal and monetary policies are expected to focus on the adjustment of the economic aggregate and optimization of the structure. Priority will be given to the improvement of the structure and the change of the growth mode, the report suggests.

The report predicts a downward economic climate curve, which would not gather momentum in the movement, as the effect of the macro-control policy would be more visible in the remaining months of the year.

The report holds that the economy will embrace another round of rising cycle. A preliminary judgement shows the economy grows at a pace of some 9 percent for this year, which is a little slower than that of the last year.

The report set the tone the macro-economic policy next year as structure-oriented macro-control policy. As to the fiscal policy, though the proactive fiscal policy reflected by issuing more state treasure bonds has actually been phased out, its role in public investment, structural coordination and strategic adjustment is still regarded as irreplaceable. So it will be devised to contribute more to structural adjustment.

The monetary policy, the report believes, should be neutral basically on one hand and effective to channel the investment to the right track on the other. Overheating sectors with enormous financial risks exposure, such as the real estate and iron and steel industries, will continue to face tight money supply and even special measures of interest rate hike, for example, raising the interest rate of mortgage loans for the property sector. The purpose is to harness investment bubbles.

This is not thought necessary for other sectors. The policy for them should be neutral, the report says.

The synergy of the fiscal and monetary policy will also be considered to patronize the innovation activities of domestic enterprises and sharpen their international competitiveness.

By People' s Daily Online