Chinese central bank official sees liquidity balanced, no big swings in Q4
Reuters
Published Oct 15, 2021 07:30AM ET
BEIJING (Reuters) - Liquidity in China's banking system will be basically balanced in the fourth quarter, with no big fluctuations, a central bank official said on Friday.
The People's Bank of China (PBOC) will stick to normal monetary policy, which will be flexible, targeted and appropriate, Sun Guofeng, head of the central bank's monetary policy department, told a briefing.
The PBOC will use various tools to keep liquidity reasonably ample and enhance stability of total credit growth, he said.
"In the fourth quarter, supply and demand of liquidity in the banking system will continue to be basically balanced and there won't be any big fluctuations," Sun said.
The PBOC is likely to keep banks' reserve requirement ratio (RRR) unchanged in the fourth quarter, before delivering another 50-basis points cut in the first quarter of 2022, the latest Reuters poll of economists showed.
In July, the PBOC cut the RRR for banks, releasing about 1 trillion yuan ($155 billion) in long-term liquidity. Until recently, most analysts had expected another RRR cut this year, though some still hold out that possibility.
The PBOC will keep the yuan basically stable, Sun said, adding China's inflation was under control.
The central bank will provide low-cost funds to financial institutions to support carbon emission reductions and help achieve the country's carbon neutrality goals, he said.
($1 = 6.4318 Chinese yuan renminbi)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.