BEIJING , March 16: China kept Zhou Xiaochuan on as governor of the central bank on Saturday in a bid to speed up market-based reforms needed to sustain long-term growth in the world’s second-largest economy and to ensure policy continuity amid global uncertainties.

The re-appointment of Zhou, a key driving force behind China’s financial liberalisation, signals Beijing’s bid to put economic growth on a more sustainable footing.

“By keeping Mr Zhou as the central bank governor, the new leaders signal that they endorse what Mr Zhou has achieved and wish to continue China’s unfinished financial reforms,” said Ting Lu, China economist at Bank of America-Merrill Lynch in Hong Kong.

“We expect China’s new government to further liberalise exchange rates, lift capital controls, liberalise interest rates, open up the banking sector and develop capital markets.”

Zhou, who took the helm of the People’s Bank of China (PBOC) in 2002, has led the drive to liberalise interest rates and abolish the yuan’s peg to the US dollar, a step along the path to turning it into a global currency.

Reuters reported last month that Zhou was to keep his central bank post, courtesy of his elevation to the Chinese People’s Political Consultative Conference (CPPCC) that carries “national-level leader” rank and exempts him from compulsory retirement at 65 for officials in cabinet minister-ranked jobs.

Zhou reached that age in January.

The announcement, which was widely anticipated following Zhou’s election to the CPPCC, came on the penultimate day of China’s annual session of parliament, the National People’s Congress.

It was unclear how long Zhou will remain central bank chief, but a source with leadership ties told Reuters last month that he was needed to drive capital account reform. Zhou will be the longest-serving central bank chief since the establishment of the People’s Republic of China in 1949, and among the longest-serving in the world.—Reuters