The Central Bank of China (PBoC) will still carry on the policy of moneternya the "be careful" in the second half of this year, but still consider easing action in providing sufficient liquidity in the financial market and ensure adequate capital for the investment program of the Government.
PBoC said in a statement it will implement a more flexible approach, and the various policy instruments as well as performing the best, disclosed after the meeting attended by the PBoC Governor Zhou Xiaochuan, as well as the heads of the branches Wednesday in Beijing yesterday. The main purpose of next month is "maintaining liquidity and credit growth is decent, also lowering loan interest and encourage the main sector, also prone sectors," said the PBoC.
The PBoC statement following comments issued after the meeting of the Political Bureau of the Central Committee of the Communist Party of China earlier Tuesday, where President Xi Jinping stressed the need for a policy of monetary savings to provide sufficient liquidity to the real economy. Wang Tao, Chief Economist, UBS AG said it may involve additional cuts in interest rates, and the next step seems to be done at the end of the third quarter, also the active provision of liquidity.
"We do not see a rebound consumer price index of foodstuff as monetary looseness hitch, as economic slack is generally will prevent inflationary turmoil that we don't want. Indeed reflasi the lowest level in the fiscal conditions now will greatly help remove pressure deflation to stabilize the debt cycle, "said Wang.
It also means the possibility of a rise in the use of the Additional loan facility Tied (PSL) to increase lending to support the cooperation of public and private sectors are also major infrastructure projects https://www.mql5.com/en/signals/120434#!tab=history
