Senior PBoC official hints at further easing to come

Haresh Menghani FXStreet

Zou Lan, head of the People’s Bank of China’s (PBOC) monetary policy department, in an interview with state media outlet Xinhua News Agency on Tuesday, hinted a further policy easing by the central bank.

Key comments:

The PBoC may use open market operations, medium-term lending facilities and reserve requirements among other monetary policy tools to provide “strong" support for reasonable credit growth.

PBoC will strengthen its counter-cyclical and cross-cycle policy adjustments to create favourable financial conditions for the country’s economic growth.

PBoC will also take measures to prevent funds from clogging and idling while guiding financial institutions to strengthen their liquidity risk management for stable money market operations.

Market reaction:

The Chinese Yuan, meanwhile, reacts little to headlines, with the USD/CNH pair trading around the 7.1840 level or nearly unchanged for the day.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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