According to a commentary in the 21st Century Business Herald published on Sunday, the People’s Bank of China’s (PBOC) latest Q2 monetary policy report suggests a marginal tightening.

Key quotes

“Compared with the Q1 report, the PBOC has put forward a new requirement that monetary policy should take into account "sustainable development".

“This could mean the period of the loosest monetary policy has passed.”

“The PBOC also removed "controlling inflation" from its target as the CPI fell. “

“Although this will leave room for some monetary easing, the easing won't be greater than that in the first half of the year.”

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