Comments out earlier from the PBOC vice gov Yi Gang after yesterday's rate cut. Reuters reporting

  • PBOC pays great attention to the trend of China's real interest rates
  • will cut RRR in future at a "normal" pace
  • China to continue to set benchmark lending, deposit rates for some time but these rates won't restrict market pricing
  • sees "very normal" economic growth of around 6-7% in next 3-5 years
  • interest rate liberalization does not mean PBOC will reduce regulation of rates
  • yuan has stabilized
  • China does not have exceptionally high debt levels
  • PBOC is looking into leverage levels in China's stock markets
  • China is not overly anxious to reduce leverage levels
  • overall strategy is to stabilize leverage levels
  • stock market has completed most of its adjustments
  • China should strictly control shadow banks

Yesterday the PBOC also said they had room to cut rates further as Ryan reported here

Note the use of new term " very normal" for lower growth expectation

Says Yi Gang:

"China's future economic growth will still be relatively quick. Around seven, six-point-something - these will all be very normal,"

Reuters has more here