CX Daily: Why and How China’s Overhauling Monetary Policy (Part 1)

Monetary /

Caixin Explains: Why and how China’s overhauling monetary policy (Part 1)

China’s central bank is starting a major overhaul of how it manages monetary policy as the country adapts to slowing growth and the changing structure of the economy.

The new framework, which brings the People’s Bank of China (PBOC) more into line with its peers in other major economies including the U.S. and European Union, was flagged by Governor Pan Gongsheng in a speech in June. He also pledged to improve communication with the markets to enhance transparency and guide expectations about the direction of policy.