China’s cabinet promised stronger monetary support for the economy while warning against flooding the market with liquidity.
- In a State Council meeting led by Premier Ki Keqiang, the cabinet advocated for the adoption of monetary policy tools to maintain credit expansion at a stable level.
- The authorities also committed to sustaining policies that can support the economy while committing to avoid measures that can hamper market confidence.
- The report comes as Chinese banks left borrowing costs unchanged as even some market participants expect a cut after a strong commitment from Vice Premier Liu He last week to support growth.
- The one and five-year loan primate rates were kept the same at 3.7% and 4.6%.
The cabinet also stated that it is important to monitor how international developments affect the domestic capital market. Some 1 trillion yuan ($157B) of tax refund for smaller firms was also reported.
CSI 300 Index down -0.17%, CNY USD up +0.17%
Source: Bloomberg.
