PBOC to keep monetary policy stable – Xinhua

Dhwani Mehta FXStreet

The People's Bank of China (PBOC) is likely to maintain a stable monetary policy and make it more forward-looking and effective while avoiding a "flood-like" stimulus, Xinhua News Agency reports, citing a quarterly report by the Chinese central bank on monetary policy implementation.

Key quotes

“The bank will coordinate macroeconomic policies for 2021 and 2022, boost high-quality development with moderate monetary growth, and support the continued recovery of small and medium-sized firms as well as industries in difficulties.”

“Overall, China has adhered to implementing normal monetary policy since the outbreak of the COVID-19 epidemic, with the intensity of monetary policy basically returning to the pre-epidemic level in the first half of this year.”

“The central bank will maintain a prudent monetary policy that is flexible, precise, reasonable and moderate, stick to normal monetary policy, carry out cross-cyclical policy design, and walk a fine line between economic recovery and risk control.”

USD/CNY: Yuan to weaken into year-end as central bank policies diverge – MUFG

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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