(ECNS) -- China's central bank on Thursday reiterated its commitment to allowing market forces to play a decisive role in determining the RMB exchange rate, according to a policy statement released by the People's Bank of China (PBOC).
Objectively speaking, pinning down a precise equilibrium level is a formidable task, as assessment results from different models often vary widely, suggesting that no single method is sufficiently reliable on its own, the PBOC said.
Objectively speaking, pinning down a precise equilibrium level is a formidable task, as assessment results from different models often vary widely, suggesting that no single method is sufficiently reliable on its own, the PBOC said.
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The observation, shared in a recent market note, suggests that the PBOC is potentially allowing for greater two-way flexibility in the currency, moving away from a tightly managed depreciation path.
Nevertheless, Ming Ming, chief economist at CITIC Securities, said the latest PBOC meeting suggested a marginal moderation in policy tone, and he expects monetary policy tools to remain broadly prudent in the next stage.