PBOC warns against herd behavior in markets, vows policy tool adjustments
The central bank pairs the warning with a pledge to refine its policy framework and strengthen the foreign exchange market.
Published
The People's Bank of China warned against herd behavior in financial markets and said it will adjust monetary policy tools as needed. The central bank also pledged to advance improvements to its monetary policy operating framework and to enhance the resilience of the foreign exchange market.
The statement follows a third-quarter meeting at which the PBOC pledged more targeted policies. Credit growth in China has underperformed expectations through August, and the central bank has already been supplying liquidity through reverse repos.
The warning signals concern about disorderly market moves, particularly in foreign exchange, but it stops short of announcing fresh stimulus. That keeps the central bank's approach consistent with its prior messaging, which has favored targeted measures and yuan stability over broad easing, and leaves its measured stance intact even as credit growth and money supply data run soft.