PBOC says prudent monetary policy will be forceful and precise

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  • To pay more attention to cross-cyclical and counter-cyclical adjustment
  • Will replenish monetary policy toolkit accordingly
  • Will strive to foster sound monetary and financial environment
  • To keep yuan exchange rate basically stable
  • Will better support expanding domestic demand

This reaffirms their current policy stance as they are continuing to try and bolster conditions to support the economic recovery. Personally though, I still hold some reservations about the improving domestic demand in China as it has been crushed quite badly from early to middle of this year.

This article was written by Justin Low at www.forexlive.com.

Go to Forexlive

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