PBOC Keeps Neutral Stance, Stable Liquidity: Herald

The PBOC is seen largely maintaining a neutral monetary policy stance even though it conducted reverse repos to ease mid-year tightened liquidity condition, the 21st Century Business Herald reported citing analysts. The central bank has increased the size of injection to CNY30 billion for three trading days from CNY10 billion previously, the newspaper said. This increased injection may also aim to make room for a possible reduction in H2 in case the U.S. proceeds to tighten, the newspaper said citing analysts. The PBOC may continue to keep liquidity stable in July when CNY400 billion medium-term lending facility and CNY60 billion reverse repos mature, but further easing is unlikely, the newspaper said citing analyst Zhou Yue with Sinolink Securities.