In its latest quarterly policy report published on Saturday, the People’s Bank of China (PBOC) highlighted the following key points.
China has no conditions for continuous inflation or deflation as the government’s macro policies are taking effect.
The domestic economy is facing downward pressure, and its endogenous growth momentum should be further enhanced.
PBOC will step up counter-cyclical adjustments while staying away from using a deluge of stimulus policies.
Efforts should be enhanced to prevent the spread of the expectations for inflation.
The headlines have little to no impact on the CNY markets, as USD/CNY trades on the front foot near 7.0110 despite a stronger Yuan setting by the PBOC.
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