People’s Bank of China (PBOC) Governor Pan Gongsheng emphasized on Friday the widespread concern over the negative impact of ongoing trade frictions. Pan highlighted that economic fragmentation and rising trade tensions continue to disrupt global industrial supply chains and hinder global growth momentum.
In his remarks, Pan called for enhanced dialogue and greater policy coordination between major economies to address these challenges. He also advocated for the construction of a more stable, efficient, and resilient international financial architecture, which he believes is essential for mitigating the effects of economic fragmentation.
Despite the global uncertainties, Pan provided an optimistic outlook for China’s economy, noting that it is off to a strong start this year and continues to show signs of a solid recovery. He reassured that China’s financial markets are running smoothly and reiterated the country’s commitment to implementing a moderate and loose monetary policy to support further economic development.
Market Reaction
Following Pan’s comments, the AUD/USD pair showed a slight decline, down 0.03% on the day, trading at 0.6407 as of the latest update.
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