Senior People’s Bank of China official hints at further easing to come

ICYMI, comments from 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:

  • said that 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 growth in credit
  • PBOC will also strengthen its counter-cyclical and cross-cycle policy adjustments to create favorable 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


Rumours of further easing to come from the People’s Bank of China never goes away. The Bank is in a bit of a conundrum though:


Still to come soon:

*** USD/CNH update (offshore yuan):

This article was written by Eamonn Sheridan at Source