Stability will continue to be the main tone of Chinese monetary policy – China Press
|The People’s Bank of China’s (PBOC) monetary policy will remain stable as the capital tight balance situation will likely continue this year, the Economic Information Daily reported on Thursday.
Key points
"Stability" will continue to be the main tone of monetary policy, and the central bank's liquidity management will still adhere to the strategy of pre-adjustment and fine-tuning, with the goal of maintaining stable market interest rates.
On the whole, the funding side will show a relatively "tight balance" situation.
“The "China Monetary Policy Implementation Report" for the fourth quarter of 2020 pointed out that a prudent monetary policy should be flexible, precise, reasonable and appropriate, adhere to a stable word, not make sharp turns, grasp the timeliness and effectiveness of policies, and handle the relationship between economic recovery and risk prevention, to maintain the sustainability of the normal monetary policy space.”
Market reaction
USD/CNY holds steady at 6.4562, unfazed by the above op-ed in the Chinese media.
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