sentences: following the guidance of the communistparty of china’s central committee and the state council, the pbc closelymonitored economic and financial developments while at the same time strengtheningthe preemptiveness of monetary policy by applying a mix of policy measures toimprove financial macro control and preserve balances at the aggregate level.despite the fact that volatilities in the ussubprime mortgages market have caused turbulences in the internationalfinancial market recently, the impact was so far quite limited on china.