China Securities Journal: PBOC unlikely to loosen policy substantially

The People's Bank of China (PBOC) is unlikely to loosen monetary policy substantially, unless there is a significant slowdown in the economic activity, according to a front-page commentary on the China Securities Journal.

Key points

• There will be target RRR cuts.
• Liquidity in the bank market is not very tight.
• The narrowing China-US interest rate spread puts pressure on the yuan and on capital flows.