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Expectations for near-term easing cooled after Chinese central bank officials said that the country will maintain prudent monetary policy and that there is no shortfall in base money supply.
There is no large monetary base gap in China, and the supply and demand for liquidity will maintain balanced in the next months, said Sun Guofeng, head of the PBOC’s monetary policy department.
The People's Bank of China (PBOC) has adequate tools to smooth out periodic fluctuations in liquidity caused by factors such as fiscal revenue, expenditures and government bond issuance, he said . . .
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