China's central bank said it is keeping a close eye on monetary policy in other countries without signaling interest rate changes at home.
According to a CNBC translation, the head of monetary policy at the People's Bank of China said they were paying close attention to the tightening of monetary policy.
He didn't say which countries.
In the last month or so, many central banks have tightened monetary policy, with the exception of Japan and China. The Council on Foreign Relations index of global monetary policy stood at 3.99 in June, up from negative 8.7 in December. neutral policy is zero
The PBOC takes precautions against any spillover from other central banks. Adjusting the level of foreign currency banks need to have on hand is one of the measures.
The domestic situation is the main driver of China's monetary policy.
He said that there was little need for rates to be cut in China. He stated that the PBOC would continue to implement prudent monetary policy.
He said that hard work is needed for economic stability.
The impact of Covid and the Russia-Ukraine conflict was described by PBOC policymakers as greater than expected.
The world's second-largest economy is expected to report modest growth in the second quarter.
The city of Shanghai was forced to lock down in April and May due to the spread of the Covid variant.
The Fed raised interest rates last month by the most since 1994 and promised an "unconditional" approach to tame 40-year highs in inflation.
At its July 21 meeting, the European Central Bank is expected to raise interest rates.
Following a large rate hike by South Korea, the central bank of Singapore raised rates Thursday. The central bank hiked rates.
The Swiss central bank raised rates for the first time in 15 years.
The G-20 finance leaders are in Indonesia for a meeting this weekend.
All Rights Reserved © 2024
