China to maintain neutral and stable monetary policy: PBOC

Bloomberg

China will maintain a neutral and stable monetary policy while also assuring reasonable and ample liquidity, the People’s Bank of China said in a statement on Saturday.
China’s overall exchange rate and market expectations are stable, the bank said at its third-quarter meeting. The nation will continue to deepen its financial system reform, the PBOC said in its statement.
The bank said it aims for balance among interest rates, exchange rates and international payments to ensure stable and healthy development of the economy and to stabilise market expectations. The bank also vowed to guard against financial risks and reaffirmed more financial support to the real economy and private sector.
Leading indicators for China’s economy show growth continued slowing in September amid the escalating trade war with the US. The September purchasing managers indexes for the manufacturing and services sectors was expected to be released on Sunday. Both will decline slightly, according to forecasters surveyed by Bloomberg.
Premier Li Keqiang vowed to further cut taxes, administrative fees and red tape in an effort to support the real economy, according to a government statement. The remarks followed president Xi Jinping’s pledge on Friday that the nation will “unswervingly” encourage, support and protect development of the private economy, while at the same time encouraging state-owned enterprises to be “stronger, better and bigger”.
China’s central bank didn’t follow the Federal Reserve’s interest-rate increase this week, with analysts saying growing uncertainty would keep it from increasing borrowing costs for some time. Most PBOC watchers expect the central bank will continue increasing the amount of liquidity in the financial system in the fourth quarter, according to a Bloomberg survey.