PBOC Has Large Capacity for Monetary Adjustments: Governor

The People's Bank of China has significant capacity for monetary adjustments as its pursuit of normal policies has left it with appropriate rates and plenty of tools, Governor Yi Gang said on Sunday at the China Development Forum. The central bank will cherish this position of normality and maintain policy continuity, stability and sustainability, Yi said according to an official transcript. China's M2 growth at around 10% y/y is on par with nominal GDP growth, Yi said. The PBOC plans to set up re-lending programs to encourage financial institutions to invest in green assets, Yi said. China also aims to publish a green assets standard in consultation with the EU at the end of this year, he added.