PBOC’s Yi signals policy to stay cautious amid uncertain data – Bloomberg

Dhwani Mehta FXStreet

Bloomberg reports the latest comments delivered by the People’s Bank of China (PBOC) Governor Yi Gang in an interview with the WeChat account of Qiushi, the Communist Party’s flagship magazine, on Sunday.

Key Quotes:

“The world’s economic downturn will likely stay for a long time.”

“We should stay focused and targeted, while not competitively lowering interest rates to zero or engaging in quantitative easing.”

Economic development “should not be simply judged by gross domestic product growth.”

“The mission of monetary policy is to keep prices stable and protect people’s money from inflation.”

Repeated “a pledge to keep the yuan flexible and not engage in competitive depreciation.”

USD/CNY is off the highs and now trades around 7.03 levels after the Chinese yuan was rescued by a big beat on the Chinese Caixin Manufacturing PMI data that arrived at 51.8 vs. 51.4 expected.

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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