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The downward pressure on the Chinese economy is increasing and potential risks and problems for the economy are difficult to eliminate over the short term, the People’s Bank of China (PBoC) said on Monday, per Reuters.

“China will continue to implement proactive fiscal policy, prudent monetary policy,” the PBoC added. “China will implement tax cuts of a greater scale, will increase local govt special bonds quota by a large margin.”

These comments were largely ignored by the market participants and the upbeat mood remains intact with major European equity indexes and the 10-year US Treasury bond yield trading in the positive territory on Monday.