PBoC: Will enhance monetary policy adjustment strength

• Will keep liquidity ample.
• To guide financial institutions to step up credit supply.
• Will enhance central bank policy interest rate guidance.
• To give full play to the role of the self-discipline mechanism for market interest rate pricing.
• To enhance interest rate policy implementation.
• To guide social financing cost to lower.
• To pay attention to the changes in long-term yields in bond market.
• To prevent forex rate overshooting risk.
• To keep yuan exchange rate basically stable at reasonable, balanced level.
• To intensify efforts to revitalise existing commercial housing and land.

We have heard this stuff many times before, but they continue to have positive real rates in a deflationary environment. They should cut more aggressively and faster in my opinion.

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