MNI BRIEF: PBOC To Enhance Easing On External Uncertainties
MNI (BEIJING) - The People’s Bank of China should intensify the strength of easing due to uncertainty over inflation trajectories, monetary policy among major economies, along with China's weak domestic demand and risks, according to PBOC Monetary Policy Committee Q1 meeting held Friday.
The Bank should cut reserve requirements and interest rates in a timely manner, and maintain ample liquidity to guide lenders into expanding credit, said the MPC, noting the authorities will assess bond market, focusing on long-term yield trends, improving monetary policy transmission to prevent idle fund circulating inside the financial system.
The central bank will also strengthen foreign exchange market resilience, enhance oversight, and resolutely correct pro-cyclical market behaviors, whilst exploring new structural tools to support technological innovation, consumption, and foreign trade, the release stated. (See:MNI INTERVIEW: Low Inflation Gives Room For More China Easing)