China’s NDRC: There will be no sudden shift to monetary policy this year

Dhwani Mehta FXStreet

China’s monetary policy will be maintained this year, the National Development and Reform Commission, the country’s state planner, said in a statement on Tuesday.

Additional quotes

“Will roll out more targeted measures to help companies.”

“Believes China has the ability and conditions to consolidate economic recovery this year.”

“Monetary policy will provide the necessary support to struggling firms this year.”

“Temporary policies rolled out during pandemic cannot last in the long term.“

“China will control the pace of policies to ensure stable economic recovery, no "policy cliff".”

“Incorrect to say China's economic policies will be fully rolled back this year.”

This comes after China reported a 2.3% growth in the GDP last year, the slowest expansion in over four decades amid the coronavirus pandemic.

Market reaction

The yuan caught a fresh bid-wave on the above comments, with USD/CNY having fallen to 6.4816 lows. The spot was last seen trading at 6.4851, down 0.08% on the day.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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