The head of the People’s Bank of China’s (PBOC) monetary policy department, Sun Guofeng, was back on the wires in the last hour, this time speaking to media at a news briefing in Beijing on the central bank’s monetary policy outlook.
Key Quotes (via Reuters):
China’s reserve requirement ratio (RRR) is at an appropriate level and there is limited room for further cuts.
China will make timely adjustments to benchmark deposit rates.
PBOC should pay more attention to changes in real interest rates when discussing whether to cut interest rates.
Real interest rates have been falling significantly and funding costs for small firms also declining.
Meanwhile, the USD/CNY cross failed to sustain the recovery attempt above the 6.89 handle and returned to the red zone, now trading near 6.8790.
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