PBOC: China's economy faces uncertainties

Zhou Xiaochuan (3rd L), governor of the People's Bank of China (PBOC）, the country's central bank, Hu Xiaolian, deputy governor of PBOC, Liu Shiyu, deputy governor of PBOC, and Yi Gang, deputy governor of PBOC and head of the State Administration of Foreign Exchange hold a news conference on monetary policies and financial reforms in Beijing on Monday. [Photo by Jiang Dong/chinadaily.com.cn]

The governor of China's central bank said Monday that a slow world recovery process and the unstable economic and financial situation in Europe will be the biggest uncertainties for China's economy this year.

Zhou Xiaochuan, governor of the People's Bank of China (PBOC), made the remarks at a press conference on the sidelines of the ongoing annual parliamentary session.

Zhou said the economic situation in other major developed countries is also an important factor that will influence China's prudent monetary policy.

He said China needs to closely monitor some new problems related to geopolitics when establishing its monetary policy.

"The world economy is highly globalized with a very active flow of capital worldwide," Zhou said. "All of these factors will have an impact on our monetary policy."