PBOC says that monetary policy will depend mainly on domestic conditions

Comments by PBOC monetary policy department director, Sun Guofeng

• PBOC is paying close attention to foreign central banks rate cuts
• Says will deepen interest rate reforms
• Also will further reduce real interest rates for small firms

One of the key questions now is that if the Fed is embarking on a more easing monetary policy cycle, would it prompt the PBOC to do the same as well? I reckon we'll have to wait and find out in the coming months as it may be too early to tell but this will certainly be a development to keep an eye on later in the year.