PBOC Official: All monetary policy tools needs to be used flexibly to maintain liquidity reasonably ample


An official at the People’s Bank of China (PBOC) said on Friday, “RRR cuts, open market operation, MLF, and all structural monetary policy tools need to be used flexibly to maintain liquidity in the banking system reasonably ample.”

He added that they “will guide banks to effectively adjust mortgage interest rates and support banks to reasonably control the cost of liabilities.”

Meanwhile, A China state planner, the National Development and Reform Commission (NDRC), official said, “the economy will be stable and improve in H2.”

Separately, China’s Finance Ministry said that small firms and individual businesses still facing difficulties.”

Market reaction

At the time of writing, AUD/USD is consolidating the recovery gains above 0.6550. The pair is trading at 0.6566, adding 0.20% on the day.

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