“China has not seen deflation, no deflationary risks in the second half of 2023 (H2 2023),” per the latest comments from People’s Bank of China (PBoC) Deputy Governor Guoqiang Liu.

The PBoC official also mentioned that the Consumer Price Index (CPI) could decline further in July before improving in August.

“Central Bank has ample tools,” said PBoC Deputy Governor while adding that they will step up counter cyclical adjustments.

The policymaker also showed readings to increase support measures for key sectors while keeping credit growth appropriate.

USD/CNH stays pressured

Despite the mostly upbeat comments, USD/CNH remains pressured at the lowest levels in a month, down 0.07% intraday near 7.1460 by the press time.