PBoC Gov Pan says interest rate and RRR tools will be utilized to maintain ample liquidity

PBoC Governor Pan stated that China’s economy has tackled risks and challenges in recent years, adding that there is confidence and capacity to overcome economic difficulties.

• Interest rate and RRR tools will be utilized to maintain ample liquidity.
• Reaffirms China plans to increase the fiscal deficit.
• China will remain a driving force for the global economy.
• Policy focus should shift towards investment and consumption.
• Challenges persist in China’s economic development.
• Emphasis will be placed on boosting residents’ consumption demand.
• China’s real estate market is reaching a new equilibrium.
• Will significantly increase China’s national FX reserve allocation in Hong Kong.
• Will support Hong Kong monetary authority to use exchange fund to replenish the offshore renminbi market.

This article was written by Eamonn Sheridan at www.forexlive.com.