Global Times: China may further loosen monetary policy to bolster growth

Author: Eamonn Sheridan | Category: Central Banks

GT with this from Thursday ICYMI

  • According to PBC officials, China is not likely to change its trend of monetary policy easing soon. Monetary policy in the coming months will continue to serve the "Six Priorities" and remain appropriately loose and flexible. 
  • PBC governor Yi Gang recently noted that in the second half of 2020, the central bank will use monetary policy to ensure liquidity is at a "reasonably ample" level, with new loans to hit 20 trillion yuan for the full year and total social financing likely to increase to 30 trillion yuan.
  • Yi also noted that the financial support offered during the epidemic response period is being phased out, and China should pay attention to the aftermath of the policy and consider the timely withdrawal of policy tools in advance.

Check out the link (above) for more. PBoC have been draining funds in past weeks via OMOs each day, mainly by not injecting more as reverse repos mature. 

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