PBOC will maintain prudent monetary policy

Our quarterly dose of the same old waffle

  • Will fine tune policy in a preemptive and timely way

  • Will create neutral and appropriate monetary and financial environment for structural reforms

  • Will curb asset bubbles and prevent economic and financial risks

  • Sees more challenges in balancing economic growth and preventing asset bubbles

  • CPI is expected to remain stable but faces upward pressure

  • Overall leverage in the economy is still rising and financial risks are on the rise
  • RRR cuts sends a too strong policy signal
  • Will flexibly use multiple mon pol tools to keep money markets stable

If anything, these comments are a touch more bearish than usual.

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