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
- 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