PBOC To Advance Or Retreat Structural Tools As Needed-Vice Governor

The People's Bank of China will control the number and scale of structural monetary policy tools at the desired level, and form solid cooperation with aggregate policy tools, said PBOC Vice Governor Chen Yulu, in response to market concern that excessive use of structural tools would weaken aggregate tools, according to a statement on the PBOC WeChat account. Structural tools can link the central bank's funds with the credit issuance of financial institutions to support specific fields and industries, which effectively optimises credit structures, said Chen. Structural tools also have the function of basic money supply, which will help keep liquidity reasonably sufficient and support the steady growth of credit, Chen added.