Monetary Policy Flexibility Highlighted by PBoC Governor

In a recent statement, People's Bank of China (PBoC) Governor Pan Gongsheng indicated that the current monetary policy framework allows for further adjustments. Gongsheng emphasized the central bank's cautious approach towards rate reductions to mitigate the risk of a depreciating yuan.

Recent Interest Rate Decisions

On December 20, the PBoC opted to maintain its key interest rates, a decision that followed the bank's choice to keep rates steady in November as well. The last adjustment occurred in October, when the PBoC reduced its benchmark interest rates by 25 basis points, signaling a strategic approach to monetary easing.