PBoC Governor says the central bank will flexibly use various monetary policy tools including interest rates and RRR cuts; PBoC says China has no intention to, not necessary to use FX rate to gain trade competitiveness

The comments from the PBoC Governor suggest a willingness to adjust monetary policy tools, including interest rate and reserve requirement ratio (RRR) cuts, indicating a proactive stance on economic support. The emphasis on not manipulating the FX rate to improve trade competitiveness signals a commitment to market stability, potentially influencing both the CNY and broader asset markets. This dual approach could reassure investors concerned about aggressive currency policies while suggesting an easier monetary path ahead.