PBOC Dispels Fears of Policy Tightening in a Reassuring Tone of Economic Stability

Source: Bloomberg

The People’s Bank of China is noticing more stability and improvement in the economy despite persistent domestic and global risks.

CSI 300 is down -1.17%, USDCNY is up +0.17%.

• The statement by China’s central bank shifts from its first quarter tone when it said the growth was unbalanced.
• The reassuring policy tone by PBOC dispels some fears of policy tightening, with the central bank maintaining its stance to keep the policy, exchange rate, and liquidity steady.
• PBOC said it will be keeping an eye on the international policy environment to avert “external shocks.”