The People’s Bank of China (PBOC) Governor Yi Gang reiterated on Thursday, the central bank will make prudent monetary policy flexible, targeted, reasonable and appropriate.

China’s inflation is moderate overall, Yi added.

His comments come after the country’s factory-gate inflation climbed to 10.7% YoY, the highest level in 25 years. China’s Consumer Price Index rose just 0.7% YoY, missing expectations.

Market reaction

Amid these comments and the PBOC’s strong yuan fix, USD/CNY remains unperturbed.

The spot currently trades at 6.4394, adding 0.21% on a daily basis.

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