China PBOC: All commercial banks must start lowering interest rates, in batches, on all existing mortgages by Oct 31st to no less than 30 bps below the PBOC's LPR rate - PBOC statement from third-quarter meeting
- PBOC will focus on expanding domestic demand, boosting confidence and promoting a sustained recovery
- Promote stable and healthy development of the real estate market
- China's economy still faces challenges such as insufficient demand and weak social expectations
- Must maintain "reasonable" liquidity levels and credit growth
- The yuan exchange rate must also be "basically" stable; Enhance exchange rate flexibility
- Prevent sustained expectations of a one-direction market, guard against risk of exchange rate overshoot
- Will continue to further clear bottlenecks in financing of SMEs
- Will support banks to supplement capital
- Must accurately and effectively implement prudent monetary policy and pay more attention to counter-cyclical adjustments
- Must increase intensity of monetary policy regulation, improve precision of monetary policy
- Enrich its monetary toolbox, carry out treasury bond trading, and pay attention to changes in long-term yields