In its third-quarter monetary policy report, the People's Bank of China stated it will continue with a supportive monetary policy.
The Chinese central bank also pledged to increase monetary policy regulation, enhance the precision of monetary policy, maintain liquidity reasonably ample and continue to enrich the monetary policy toolkit to improve the efficient use of funds.
In addition, the PBoC promised to maintain the yuan exchange rate basically stable at a reasonable equilibrium level and strengthen forex market management. The Bank added it will study and revise money supply statistics to better reflect the real situation of money supply.
Also, the PBoC noted that further interest rate cuts face dual constraints of net interest margin and exchange rate.