Monetary policy usually maintains macro-economic stability and stabilizes internal and external shocks via affecting aggregate supply and demand.
In the first half of 2008, China's macro-economy maintained a rapid development on the whole, with the gross domestic product (GDP) increasing by 10.4% year on year.
Since 2008, the economic operation has been advancing in the direction that was anticipated when the guideline of "Two Prevents" ( prevent fast economic growth from becoming overheated growth and keep the structural price increase from turning into significant inflation) was put forward in the beginning of the year.