PBoC’s Pan: Will guide adjustments in interest rate levels based economic operations
People’s Bank of China (PBoC) Governor Pan Gongsheng said during European trading hours on Friday that monetary policy adjustments will be based on economic operations.
Remarks
Social financing conditions are at loose conditions now.
Central bank will implement appropriately monetary policy this year.
Will flexibly use various monetary policy tools including interest rates, RRR cuts.
Will guide adjustments in interest rate levels based economic operations.
Structural policy tools will docus on expanding domestic demand, tech innovation.
Will curb involution-style competition in some industries.
China has no intention to, not necessary to use exchange rate to gain trade competitiveness.
US, Israeli attacks on Iran led to spike in risk aversion in global markets.
Volatility in currencies have limited impact on over 60% of China's foreign trade.
Will enrich monetary policy toolbox.
Will continue to conduct treasury bond buying and selling operations.
Market reaction
PBoC Pan's comments appear to have negatively impacted the Chinese Yuan (CNH). USD/CNH seems to have attracted slight bids after posting an intraday low at 6.8965.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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