People's Bank of China (PBOC) Governor Pan Gongsheng is speaking at the 2024 Lujiazui Forum in Shanghai on Wednesday.
Pan said, “monetary policy will provide support for China's economic recovery.”
Additional comments
Will resolutely prevent exchange rate from overshooting.
Will make flexible use of deposit reserves and other measures.
It is difficult to maintain the overall credit growth rate above 10% as in the past.
Conditions for PBOC to trade treasury bonds in secondary market to inject base money have become gradually ripe.
At present, it is particularly important to pay attention to the risks of holding a large amount of long-term government bonds and maintain a normal upward sloping yield.
Will particularly focus on long-term treasury bond risk to keep normal upward yield curve.
It is necessary to study the inclusion of M1 statistics to better reflect the real situation of money supply.
Earlier on, China's securities regulator said that they “will make every effort to promote high-quality development of the capital market.”
Market reaction
AUD/USD posts moderate gains in Wednesday’s Asian trading, holding near 0.6665, as of writing.
