China’s Politburo: Will keep economic operations within reasonable range in 2022

Following the Chinese central bank’s second RRR cut this year, China’s Politburo said that they will keep the economic operations within a reasonable range in 2022.

Additional headlines

Macro policies will be stable, effective in 2022.

Will continue to implement proactive fiscal policy, prudent monetary policy in 2022.

Monetary policy will be flexible, appropriate.

Will keep liquidity reasonably ample.

Fiscal policy will be more effective, targeted and sustainable.

Will implement strategy to expand domestic demand.

Will promote continued recovery in consumption, actively expand effective investment.

Will improve competitiveness of manufacturing sector.

Will meet reasonable housing demand of home buyers.

Will promote healthy development of property sector.

Market reaction

AUD/USD is paring back gains, induced by the PBOC RRR cut announcement. The spot is currently trading at 0.7029, still up 0.41% on the day.

Meanwhile, USD/CNY was last seen trading at 6.3751, almost unchanged on the day.