MNI BRIEF: PBOC To Keep Modest Easing, Liquidity Ample-Pan

The People's Bank of China will continue with a moderately loose policy stance, cut reserve requirement ratios and policy rates at a flexible pace and promote the integrated effect of monetary and fiscal policies, Governor Pan Gongsheng told a briefing on Friday. 

The Bank will combine short-, medium-, and long-term policy tools, including reverse repos and government bond trading, in order to ensure ample liquidity and align the growth of aggregate financing and the money supply with targets for economic growth and price levels, he said. 

Structural monetary policy will be further strengthened, focusing on domestic demand, technological innovation, and small and micro enterprises, he said, noting that CNY5.5 trillion in structural tools account for around 11% of total assets on the central bank's balance sheet. (See MNI: PBOC To Support Fiscal Efforts, Broad Easing Seen Limited)

The central bank will gradually downplay quantitative targets, treating the total financial volume more as a reference and expectation indicator, he said.