The head of the People’s Bank of China’s (PBOC) monetary policy department, Sun Guofeng, said the PBOC will keep yuan exchange rate flexibile and improve macro-prudential policy, in a column for China Finance magazine.
PBOC to keep liquidity at reasonably ample level this year by using monetary tools such as RRR, MLF, OMO and SLF.
PBOC will improve transmission mechanism of loan prime rate.
Quickening M2 growth shows policy measures take effect.
Should pay more attention to changes in real interest rates
Real interest rates have been falling significantly, funding costs for small firms also falling.
Will make timely adjustments to benchmark deposit rates.
Meanwhile, USD/CNY turns positive near 6.8900, recovering from the Asian session low of 6.8815.
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