PBOC ready to tackle economic changes

Bloomberg

China’s central bank (PBOC) said the global outlook is worsening and that it’ll tweak its policy in a sign that trade tensions with the US are hurting the world’s second-largest economy.
“External conditions are undergoing profound changes, downward pressures are increasing, some companies are seeing more difficulties in their operations, risks accumulated over the long term are being exposed,” the People’s Bank of China said in its quarterly monetary-policy report published. The bank will “preemptively adjust and fine-tune policies according to the changing conditions.”
The PBOC vowed to make its policies more “targeted” as well as forward-looking and flexible. While sticking to what it calls “prudent and neutral” policy, the PBOC omitted a previous phrase in its policy outlook that had said it was “firmly against flood-like str- ong stimulus.” The central bank will boost financial institutions’ support to small and micro enterprises, private enterprises. The PBOC sees trade frictions leading to relatively big uncertainties for China’s future exports. The central bank reiterates that it will firmly curb any increase in “hidden debts.”
China’s exports have grown robustly all year, propped up by strong global demand and the difficulty of quickly shifting supply chains even as trade tensions with Washington deepen.