Following the increased expectations of a Reserve Requirement Ration (RRR) cut by the People’s Bank of China (PBOC) as soon as this month, China’s Cabinet-backed newspaper, the Economics Daily, warned against the market’s "simplistic" interpretations of monetary policy moves.
Key takeaways
"This is a rather simplistic interpretation of macro policy, which could easily lead to misunderstandings.
“China's monetary policy will be more focused on its continuity and stability while taking into account the government's short-term and long-term goals.”
Related reads
- Forex Today: Dollar rebounds with yields amid a quiet start to the US inflation week
- China's 10y govt yield drops 5bps to 2.85% amid bets on RRR cut
