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PBoC maintains status quo

Business | Reuters Apr 26, 2019
China's central bank has no intent to tighten or relax monetary policy, a vice governor said yesterday, as the market debates how much more support Beijing will give the economy after surprisingly resilient data was released last week.

The People's Bank of China's use of reverse repos or a medium-term lending facility does not signal that it has a loosening bias, Vice-Governor Liu Guoqiang told reporters at a briefing.

On the contrary, said Liu, if the central bank has not conducted reverse repos for a few days, it does not mean monetary policy is about to tighten. Those tools are designed to adjust short-term liquidity, he added.

Although the central bank's easing bias remains unchanged, it sees less room this year for cutting reserve requirement ratios as fiscal stimulus plays a bigger role in spurring growth, according to government advisers



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