MNI BRIEF: PBOC To Enhance Policy Strength- MPC Meeting

The People's Bank of China will intensify monetary policy and coordinate with fiscal authorities to maintain stable economic growth and keep prices within a reasonable range, according to the PBOC Monetary Policy Committee Q2 Meeting on Friday. 

In a statement on the PBOC website, the meeting called for enhanced counter-cyclical moves in the face of insufficient domestic demand, persistently low prices, and hidden risks.  Global economic momentum is weakening, trade barriers rising, and performances among major economies diverging, while uncertainties surround inflation trends and monetary policy, it said. (See MNI: PBOC Seen Resuming Bond Purchases As Gov't Issuance Rises)

It stressed the importance of foreign exchange market resilience, stabilising market expectations and preventing excessive exchange rate fluctuations. The Bank needs to maintain ample liquidity, guide financial institutions to increase credit, improve policy transmission and lower overall financing costs.

The Bank will monitor long-term yields and improve capital utilisation to prevent idle circulation of funds in financial system, it said.