PBOC: Will resort to “more powerful” policies to counter the coronavirus hit to growth
|Following the release of its first-quarter monetary policy implementation report on Sunday, the People’s Bank of China (PBOC) pledged its support to ramp up counter-cyclical adjustments to support the economy and make monetary policy more flexible to ward off financial risks.
Key highlights
“To pay more attention to economic growth and jobs among multiple targets.”
“Prudent monetary policy will be more flexible and appropriate.”
“Will maintain liquidity at a reasonably ample level.”
The phrase "will avoid excess liquidity flooding the economy" was missing from the policy outlook section.
“The central bank will continue to deepen the reform of the loan prime rate (LPR) regime and improve the monetary policy transmission mechanism to help lower borrowing costs.”
“It would promote "systemic" opening of its bond market, and will introduce more long-term investors.”
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