China’s Central Bank says would keep monetary policy prudent, flexible & appropriate



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China’s Central Bank says would keep monetary policy prudent, flexible & appropriate

On Sunday, the 5th of January 2020, less than a week after injecting a fresh monetary stimulus in to the world’s second-largest economy, China, which had been slowing sharply amid a tit-for-tat trade spat with the world’s largest-economy, the United States, People’s Bank of China (China’s Central Bank) said in a statement that the Chinese monetary policymakers would keep their measures flexible, prudent and appropriate, adding the Chinese Central Bank would continue to extend its financial reforms.

Aside from that, after a policy meet of China’s Central Bank of Sunday (January 5th) Chaired by the People’s Bank of China Governor, Yi Gang, the Central Bank of China had also pledged to prevent any kind of financial crises adding it would keep injecting fiscal stimulus to small- and medium-scale companies in form of low-cost, long-term debts.

However, following the policy meet of the People’s Bank of China, a spokesman for China’s Central Bank was quoted saying that it would continue to allow markets playing a decisive role in the FX exchange rate, but would try to keep the Chinese Yuan exchange rate stable, which in effect could ratchet up tensions in further trade talks with the United States, which had long been blaming China over currency manipulation in a bid to obtain leverage over its US exports.