PBOC Warns Risks from Fed Reducing Easing: Times

The PBOC had warned in its latest policy meeting about risks from the Federal Reserve backing out its easing impacting China, the Securities Times said citing analyst Wen Bin of China Merchant Bank, commenting on the Q2 meeting of the monetary policy committee held on Monday, which added "preventing external impact" compared with Q1's statement. The central bank adjusted its outlook on the yuan, calling for "promoting an inner-and-outer balance" after the Chinese currency surged then fell in Q2, the newspaper said. The PBOC may have seen little need to tighten liquidity given the pandemic-hit economy needs to further solidify, and the central bank is likely to continue with targeted adjustments to smoothen out short-term fluctuations, the newspaper said citing analyst Zhang Xun of Everbright Securities.