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Zou Lan, head of the People’s Bank of China’s (PBOC) monetary policy department, in an interview with state media outlet Xinhua News Agency on Tuesday, hinted a further policy easing by the central bank.
- The PBoC may use open market operations, medium-term lending facilities and reserve requirements among other monetary policy tools to provide “strong" support for reasonable credit growth.
- PBoC will strengthen its counter-cyclical and cross-cycle policy adjustments to create favourable financial conditions for the country’s economic growth.
- PBoC will also take measures to prevent funds from clogging and idling while guiding financial institutions to strengthen their liquidity risk management for stable money market operations.
The Chinese Yuan, meanwhile, reacts little to headlines, with the USD/CNH pair trading around the 7.1840 level or nearly unchanged for the day.