Remarks by PBOC governor, Yi Gang

  • PBOC has conditions to keep yield curve normal, upwards
  • No need to purchase assets at the moment

I reckon the headline remark stands out in the sense that they will continue with their supposed "prudent monetary policy" stance in dealing with the pandemic recovery. It is interesting that he is mentioning about asset purchases though.

But in any case, the current thinking is that the PBOC will keep liquidity conditions ample in order to deal with any market fallout and they also highlighted yesterday that they are planning to push real lending rates lower to stabilise the economy.