Goldman with the note.
Bottom line: In its Q2 monetary policy report, the PBOC reiterated its accommodative stance by stating monetary policy would “step up support to the real economy” and focus on implementing the already-announced policy measures such as the RMB800bn and RMB300bn additional policy bank credit. The PBOC said policymakers would “strive to achieve the best outcome in terms of economic growth”. In a special column of the report, PBOC warned the risk of higher inflation, under the backdrop of recovery of domestic service activity, rapid increase of pork prices, and higher global energy prices. We continue to expect PBOC to maintain the low-profile accommodative monetary policy stance.
Main points:
