Senior People's Bank of China official hints at further easing to come

<p>ICYMI, comments from Zou Lan, head of the People’s Bank of China’s (PBOC) monetary policy department in an interview with state media outlet Xinhua News Agency on Tuesday:</p><ul><li>said that the PBOC may use open market operations, medium-term lending facilities and reserve requirements among other monetary policy tools to provide “strong" support for reasonable growth in credit</li><li>PBOC will also strengthen its counter-cyclical and cross-cycle policy adjustments to create favorable financial conditions for the country’s economic growth</li><li>PBOC will also take measures to prevent funds from clogging and idling while guiding financial institutions to strengthen their liquidity risk management for stable money market operations</li></ul><p>***</p><p>Rumours of further easing to come from the People's Bank of China never goes away. The Bank is in a bit of a conundrum though:</p><ul><li><a href="https://www.forexlive.com/centralbank/why-the-peoples-bank-of-china-cant-ease-the-economic-headwinds-away-20240108/" target="_blank" rel="follow" data-article-link="true">Why the People's Bank of China can't ease the economic headwinds away</a></li></ul><p>***</p><p>Still to come soon:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-is-expected-to-set-the-usdcny-reference-rate-at-71618-reuters-estimate-20240110/" target="_blank" rel="follow" data-article-link="true">PBOC is expected to set the USD/CNY reference rate at 7.1618 – Reuters estimate</a></li></ul><p>*** USD/CNH update (offshore yuan):</p>

This article was written by Eamonn Sheridan at www.forexlive.com.