The People's Bank of China (PBOC) is likely to maintain a stable monetary policy and make it more forward-looking and effective while avoiding a "flood-like" stimulus, Xinhua News Agency reports, citing a quarterly report by the Chinese central bank on monetary policy implementation.
Key quotes
“The bank will coordinate macroeconomic policies for 2021 and 2022, boost high-quality development with moderate monetary growth, and support the continued recovery of small and medium-sized firms as well as industries in difficulties.”
“Overall, China has adhered to implementing normal monetary policy since the outbreak of the COVID-19 epidemic, with the intensity of monetary policy basically returning to the pre-epidemic level in the first half of this year.”
“The central bank will maintain a prudent monetary policy that is flexible, precise, reasonable and moderate, stick to normal monetary policy, carry out cross-cyclical policy design, and walk a fine line between economic recovery and risk control.”
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