An official at the People’s Bank of China (PBOC) said in a statement on Friday, cross-border capital flows will not have big impact on the yuan.
Additional quotes
China’s economy was under relatively big downward pressure in Q1.
China banks’ excess reserve ratio at 2.1% at end-march.
The monetary policy transmission mechanism has been improving.
China will keep benchmark deposit rate for a long time.
Falling lending rates help stabilize deposit rates.
China’s macro leverage ratio rose by 5 percentage points in 2019.
China should allow macro leverage ratio to rise in a phased way to expand credit to cope with virus impact.
China is far away of having liquidity trap.
Cross-border capital flows will not have big impact on yuan, which is showing greater flexibility.
Some banks have started to lower actual deposit rates due to falling lending rates.
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