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China’s Xinhua quotes the People’s Bank of China (PBOC) Governor Yi Gang’s address to 24 major financial institutions  while marking his push to speed up issuing new loans under the loan prime rate (LPR) mechanism in a bid to cut down real interest rates.

The news report also mentions that the PBOC Governor urged the financial institutions to ramp up support to the real economy and provide more financial resources to support small and micro businesses, private firms, and the manufacturing and service sectors.

FX implications

This shows China’s push towards further easing, which in turn indicates a preference for a weaker Chinese Yuan (CNY). However, no immediate reaction to the news could be witnessed by the press time.