PBOC seen shifting focus to stabilizing leverage – China Press

The People’s Bank of China (PBOC) is likely to change its monetary policy stance towards containing macro leverage ratios this year in a departure from last year's priority of reducing business financing costs, 21st Century Business Herald reports in an editorial article.

Additional takeaways

“The government may align M2 and social financing growth with nominal GDP.”

“The central bank may keep policy rates or reserve ratios unchanged unless growth deviates from the targeted range, and adjust liquidity mainly by open market operations.”

Market reaction

USD/CNY is under pressure around 6.4646, down 0.08% on the day, at the press time. The yuan traders digest the latest PBOC headlines amid a broadly subdued US dollar.

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