The PBoC reiterates implementation of loose monetary policy

• Will meet real economy’s financing needs.
• Will maintain reason growth of financial aggregates.
• Will increase efforts to support sci-tech innovation, boost consumption.
• Will support private economy, stabilise foreign trade.
• Will made good use of existing and incremental policies.
• Will strengthen monetary policy implmentation and transmission.
• Will promote international use of yuan.
• Will ‘resolutely’ safeguard national financial security.

I don’t see anything new here. We got some rate cuts recently and that certainly gives some support to the economy, but I would like them to go bigger on rate cuts given that they still have positive real rates amid deflationary forces.

This article was written by Giuseppe Dellamotta at www.forexlive.com.