PBOC’s Vice-Governor: Monetary policy in 2021 will provide necessary support for economic recovery
|The People’s Bank of China’s (PBOC) Vice Governor said Friday, the central bank’s monetary policy in 2021 will provide the support necessary for the economic recovery.
Additional comments
Prudent monetary policy in 2021 will be more flexible, targeted and appropriate.
Monetary policy in 2021 will provide necessary support for economic recovery.
Will prioritize stability in monetary policy, no sudden shift.
End-2020 weighted average corporate lending rate at 4.61%, down by 51 bps from a year ago.
Will stay vigilant against global risks.
Separately, the head of the PBOC’s monetary policy department, Sun Guofeng, made some comments on the yuan exchange rate.
Key quotes
Two-way fluctuations in yuan will become normal going forward.
Will keep yuan basically stable on a reasonable, balanced level.
Yuan's appreciation or depreciation will not be sustained.
Current interest rate levels are appropriate.
Market reaction
The Chinese proxy, the AUD, is little affected by the above comments. AUD/USD was last seen trading near 0.7755, down 0.28% on the day.
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