China’s Central Bank struck an encouraging tone in the quarterly monetary policy meeting as the Chinese economy is showing improvement and stability despite persisting domestic and global risks.
- The monetary policy committee largely emphasized its intention to retain the currency policy, liquidity, and stability of the exchange rates.
- The committee reported that the recovery is operating in a stable way with increased improvement and strength. The PBOC also sought to enhance coordination with global economic policies and limit external shocks.
- Li-Gang Liu, CitiGroup Inc. economists stated that the positive tone dispels concerns of policy tightening in the Chinese economy.
The stability and balanced economic growth in China helped PBOC to retain its policy stance, adopting a gradual strategy to limit credit growth to manage financial risks while offering adequate liquidity.
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Source: Bloomberg.