Comments by PBOC vice governor, Liu Guoqiang
- Prudent monetary policy is overall appropriate, neither tight nor loose
- PBOC doesn't want to see liquidity shortage or stimulus flood
- Use of repos and MLFs does not signal loosening bias
- PBOC market operations are to adjust short-term liquidity only
Meanwhile, another PBOC official is out saying that China is to maintain its structural deleveraging process among other developments. It feels like they're wanting to signal some calm in markets before they deliver possible changes to the RRR or it could just be part of their usual rhetoric.
In any case, just something to take note as it could tie up with this earlier story.
