This undated file photo shows Chen Yulu, deputy governor of the People's Bank of China. (PHOTO / XINHUA)

BEIJING - China’s monetary policy will provide the necessary support for the country’s economic recovery in 2021, Chen Yulu, a vice-governor at the People’s Bank of China (PBOC), said on Friday.

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Sun Guofeng, head of the monetary policy department of the PBOC, said two-way fluctuations in the yuan currency will become normal going forward

China’s prudent monetary policy will be more flexible, targeted and appropriate this year, Chen Yulu told a news conference, adding the central bank will prioritize policy stability and avoid making sudden shifts.

Chen also said the central bank will prevent big fluctuations in the country’s asset prices through macro-prudential policies.

China’s weighted average corporate lending rate was 4.61 percent at end-2020, down 51 basis points from a year ago, Chen said, reflecting authorities’ drive to bring down costs for cash-strapped businesses.

Sun Guofeng, head of the monetary policy department of the PBOC, told the same briefing that two-way fluctuations in the yuan currency will become normal going forward.

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The central bank will keep yuan basically stable on a reasonable, balanced level, Sun said, reiterating the current stance.