The People's Bank of China issued its quarterly monetary policy report on Monday.
The Bank said:
- economic growth is set to rebound sharply in Q2, the PBOC citing a low comparison base a year earlier when Covid-19 lockdowns stunted growth
- there is no foundation for long-term deflation or inflation, consumer inflation will stay low in the second quarter due to insufficient demand.
- PBOC said in the report that it would work to expand domestic demand, while striking a balance between economic growth and prices
From China yesterday:
- kept its key MLF policy rate unchanged
- commercial banks have been allowed to lower some of their deposit rates in response to shrinking net interest margin
PBOC Governor Yi Gang
