The People’s Bank of China will inject about 440 billion refinancing funds into the market
The People’s Bank of China stated that on top of the tools for direct anti-epidemic special refinancing and inclusive refinancing and other direct tools to the real enterprises, two new monetary policy tools for the real economy were created to extend the loans to the small and micro enterprises Support tools, as well as the Pratt & Whitney Small and Micro Business Credit Loan Support Program, are expected to further improve the structured monetary policy tool system, and encourage local governments to implement the “extendable” policy on Pratt & Whitney small and micro business loans. The People’s Bank of China estimates that the above two new policy tools will inject about 440 billion yuan of refinancing funds into the market, which is expected to help further ease the liquidity pressure caused by the new crown epidemic in domestic SMEs.
Global economy continues to decline, stimulating gold prices
On Monday, U.S. protests superimposed international trade worries, which drove gold to a more than one-week high of $1744.69. However, the short-term anticipation of economic recovery has offset the effect of rising U.S. protests and international trade concerns. If economic data continues to improve, it may continue to suppress gold prices. Affected by the rebound in the stock market, fund managers reduced their holdings of gold ETFs. However, analysts pointed out that the downward pressure on the global economy is still high, which may promote more stimulus measures, which is still bullish for the gold price in the long run.
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