The People’s Bank of China (PBOC) is planning to improve credit flow into the country’s production sector by introducing an adjustment to financial institutions’ “actual” lending rate for companies, according to Sun Guofeng, head of the PBOC Monetary Policy Department.
Key quotes (source: China Daily)
We hope (policy fine-tuning) will not surprise the market when it is introduced.
Communication with other countries is needed before introducing new policies or “creative monetary policy tools.”
The PBOC has good communication mechanisms with other central banks including the US Federal Reserve and the European Central Bank.
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