PBOC: Will remain policy prudent to keep yuan stable

Dhwani Mehta FXStreet

“China's monetary policy will remain prudent and flexible and increase credit expansion to counter external shocks and downward domestic pressures that will help keep the yuan stable,” MNI reports, citing a statement released by the People’s Bank of China (PBOC).

Additional takeaways

“China has the ability and conditions to stabilize the economy and inflation even though the overseas uncertainties have to be intensified by the accelerated policy tightening pace of the main economies and the rising geopolitical risks.”

“The PBOC stressed currency stability is the "fundamental monetary and financial environment " for a reasonable economic growth range.”

“The PBOC also vowed to support small and medium-sized companies via optimizing lending processes.”

Market reaction

USD/CNY is trading flat at 6.3125, as of writing, holding onto the previous rebound.

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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