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PBoC Comments Don't Move The NEedle

CHINA

Initial comments from the PBoC leadership are generally in line with recent rhetoric. The press conference was billed as a method to introduce the implementation of the CEWC decisions and financial support for the real economy economics. This is unlikely to be a game changing event for monetary policy. More immediate focus is placed on the touted equity market support scheme (flagged by BBG sources) and further short selling restrictions when it comes to Chinese equity markets. Potential for pre-LNY easing/a sizeable liquidity injection from the PBoC remains evident, particularly given the divergence in the 7-day repo and DR007 rates.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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