“China's monetary policy will remain prudent and flexible and increase credit expansion to counter external shocks and downward domestic pressures that will help keep the yuan stable,” MNI reports, citing a statement released by the People’s Bank of China (PBOC).

Additional takeaways

“China has the ability and conditions to stabilize the economy and inflation even though the overseas uncertainties have to be intensified by the accelerated policy tightening pace of the main economies and the rising geopolitical risks.”

“The PBOC stressed currency stability is the "fundamental monetary and financial environment " for a reasonable economic growth range.”

“The PBOC also vowed to support small and medium-sized companies via optimizing lending processes.”

Market reaction

USD/CNY is trading flat at 6.3125, as of writing, holding onto the previous rebound.