PBoC is to maintain moderately loose monetary policy with stronger counter-cyclical adjustments, reiterates to make use of various tools in monetary policy control and to maintain ample liquidity and keep CNY stable
- To monitor bond market from macro-prudential perspective, watch long-term yield moves.
- To comprehensively use various tools to strengthen monetary policy regulation.
- To improve FX market resilience.
- To expand domestic demand and optimise supply.
- To step monetary policy management.
- Major economies show diverging growth, inflation and policy outlook remain uncertain
Context
The PBoC's decision to maintain a moderately loose monetary policy signals its intention to support the economy amid uncertain growth and inflation dynamics. By emphasizing liquidity and stability in the CNY, the central bank aims to navigate diverging economic signals while strengthening its policy tools, likely impacting fixed income markets and the broader Asia-Pacific region.
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