Search ForexCrunch

The People’s Bank of China (PBOC) Vice-Governor Liu Guoqiang was reported by Reuters, as saying that China’s prudent monetary policy is overall appropriate, neither tight nor loose.

Additional Comments:

The central bank has no intent to tighten or relax monetary policy.

Use of Repos and Medium-term Lending Facilities (MLFs) does not signal loosening bias.

PBOC market operations are to adjust short-term liquidity only.

PBOC doesn’t want to see liquidity shortage or stimulus flood.