transformed into high investment rate, which has resulted in an investment - driven economic growth, and made extensive economic growth pattern hard to change. correspondingly, widening bop imbalances give rise to excess domestic liquidity and stimulate excess investment and surging asset prices. potential pressure on price stability has become a big challenge for macroeconomic management. the balanced development of national economy is the prerequisite for rapid development of national economy, and the main content of sustainable and healthy economic growth as well as objective requirement for harmonious social and economic development. in the period ahead, the pbc will continue to implement a sound monetary policy, focusing on both short - term liquidity management and medium and long - term objectives to further intensify economic structural adjustment and promote balanced growth of economy. first, the relationship between domestic and external demand will be appropriately dealt with by further expanding domestic consumption demand and reducing reliance on external demand. the coordination among the macroeconomic policies such as fiscal policy, monetary policy, foreign trade policy, industrial policy and investment policy will be improved by means of expanding consumption and domestic demand, lowering savings rate, boosting import and opening up market, as so to advance economic structural adjustment and promote bop equilibrium. second, monetary policy transmission mechanism and environment will be improved to enhance the effectiveness of monetary policy. efforts will be made to promote the evolution and improvement of financial market, deepen the reform of financial enterprises and state - owned enterprises. government function in economic management should be further transformed. indirect macroeconomic management mechanism should be improved to safeguard and promote sound performance of financial system. third, market - based interest rate reform will be progressed steadily. efforts will be made to improve an interest rate formation mechanism based on market supply and demand and adjusted by central bank through monetary policy instruments. market expectation shall be effectively utilized to enhance transparency and credibility of monetary policy. fourth, the coordination and cooperation between monetary policy and other economic policies should be strengthened. in line with division of labor, monetary policy and financial supervision authorities will enhance their coordination in line with the long - term development plan for financial market system construction to promote an all - round, balanced and sustainable development of financial industry. the coordination and cooperation between monetary policy and industrial policy will also be improved. according to national economic development plan, financial institutions should be guided to earnestly implement the requirement of national industrial policy by further improving credit structure and upgrading financial service. fifth, the share of direct financing will be further increased. bond market will be vigorously expanded

a slide deck to accompany these remarks is available on the ecb website. 3 / 3 bis - central bankers'speeches