Policy support aims to boost credit than lowering interest rates

In an exclusive interview conducted by China Global Television Network on Monday, People’s Bank of China (PBOC) Governor Yi Gang said that the central bank’s monetary policy support prioritizes boosting credit over cutting interest rates lower, per Bloomberg. Key quotes “Will continue to be accommodative to support economic recovery in an aggregate sense.” China’s “real … Read more

China should be wary of property market risks – Herald

“China’s monetary policy should be alert to the lagging effect and subprime mortgage risks while focusing on stabilizing prices and the property market,” the 21st Century Business Herald said in its editorial story, citing a study by Bank for International Settlements (BIS). Additional takeaways “A 1% drop in nominal short-term interest rates would lead to … Read more

6.7079 vs. the estimated 6.7046

In recent trade today, the People’s Bank of China (PBOC) set the yuan (CNY) at 6.7079 vs. the estimated 6.7046 and the previous 6.7109. About the fix China maintains strict control of the yuan’s rate on the mainland. The onshore yuan (CNY) differs from the offshore one (CNH) in trading restrictions, this last one is … Read more

China’s LPR still has downward space in H2 – Herald

“China’s financial regulators are likely to guide down banks’ capital costs to drive down their Loan Prime Rate quotations in H2, thereby reducing the loan interest rates for enterprises and residents,” the 21st Century Business Herald reported, citing analysts. Additional comments “LPR, based on the rate of PBOC’s medium-term Lending Facility and quotations submitted by … Read more

AUD/USD eases below 0.6950 amid PBOC inaction, RBA’s Lowe, Fed’s Powell in focus

AUD/USD pares intraday gains after PBOC left monetary policy unchanged. Downbeat Iron ore prices, Aussie housing market fears join hopes of higher Fed rates, recession chatters to favor bears. Covid optimism in Beijing/Shanghai, hopes of US-China trade rebound challenge downside. Juneteenth holiday to restrict market moves, comments from RBA’s Lowe, Fed Chair Powell’s testimony will … Read more

USD/CNH crosses 6.7150 as PBOC keeps interest rates unchanged at 3.7%

USD/CNG has overstepped 6.7150 as PBOC sounded neutral on interest rates. The one-year PLR and five-year PLR have left unchanged at 3.7% and 4.45% respectively. The Fed may announce one more 75 bps rate hike in July. The USD/CNH pair has scaled above 6.7100 after the People’s Bank of China (PBOC) kept a neutral stance … Read more

6.7182 vs previous fix 6.6994

In recent trade today, the People’s Bank of China (PBOC) set the yuan (CNY) at 6.7182 vs. the previous fix of 6.6994 and previous close of 6.7081. About the fix China maintains strict control of the yuan’s rate on the mainland. The onshore yuan (CNY) differs from the offshore one (CNH) in trading restrictions, this … Read more