The wide fiscal gap raises important financing issues, and its financing should not be by recourse to central bank funds as this will weaken the central bank’s ability to serve as the anchor of monetary and exchange rate stability. 45.
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.