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MNI POLICY: PBOC Governor Calls More Flexible Money Policies

By Archie Zhang 
     BEIJING (MNI) - The People's Bank of China (PBOC) will step up
countercyclical monetary policies but "with more focus on flexibility", Governor
Yi Gang wrote in Qiushi, the magazine run by the Communist Party's central
committee on Saturday.
     Signalling more expansionary policies to stabilize the economy, Yi said the
central bank will fully utilize the tools of re-lending, rediscounting and loan
forbearances to support companies and stabilize the employment.
     Yi commented that money supply and loan data released last week showed
"strengthened countercyclical monetary policies". M2 in April rose by 11.1% y/y,
the fastest growth in three and a half years. New yuan loans increased CNY8.8
trillion through April, CNY1.97 trillion more than last year. 
     Yi also disclosed that by the end of April, CNY963.7 billion in total loan
principal and CNY48.2 billion in interests were allowed by banks to postpone
payments due to the coronavirus outbreak. 
--MNI Beijing Bureau; +86 (10) 8532-5998; email: archie.zhang@marketnews.com
--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com
--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MT$$$$]

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