PBOC preaches prudent monetary policy, to keep liquidity reasonably ample

<ul><li>To comprehensively use a variety of monetary policy tools to maintain sufficient liquidity</li><li>To further optimise credit structure</li><li>Prudent monetary policy needs to be flexible, appropriate, precise, and effective</li><li>To keep yuan exchange rate basically stable, at appropriate and balanced level</li><li>To strengthen monitoring and analysis of property market</li></ul><p>It's still the same mantra that is being recited by the Chinese central bank as we get into the new year. With the Chinese economy still in recovery mode, don't expect much of a change any time soon – especially towards the lunar new year, where we would typically see ample liquidity support by the central bank.</p>

This article was written by Justin Low at www.forexlive.com.