PBOC Governor says will provide more support for the real economy

PBOC Governor Yi Gang

• will provide more support for the real economy
• monetary policy will focus on supporting small firms, sectors hit by COVID-19 Covid-19 Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Covid-19 or the novel Coronavirus is a pandemic that has yielded wide ranging economic turmoil and volatility across financial markets in 2020. The first cases of Covid-19 were reported in Wuhan, China in late 2019. Since then, the virus has expanded globally, infecting millions worldwide. The virus has been extremely controversial, namely in the United States, which became heavily politicized during the 2020 presidential election. The Covid-19 pandemic is completely unprecedented in modern ti Read this Term
• says China’s financial markets are not immune to external shocks
• says covid situation also put more pressure on China’s economy
• says PBOC will maintain price stability

Last week we had comments from China's leaders urging more support for the economy. Since then the PBOC has cut its RRR by a meagre 25bps and not moved at all on interest rates. It left last Friday's MLF rate unchanged and followed that up in the middle of this week by leaving the LPRs unchanged as well.

Yi Gang now talking up more support. When will we see actions not words? He adds:

• will keep policy accommodative, steady
• ready to unveil more policy steps