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Wednesday, the People's Bank of China reaffirmed in its second quarter monetary policy report that it will continue to adopt moderately loose monetary policy. The central bank added that it would take steps to maintain appropriate lending growth.
Although signs of a general trend of stabilization are confirmed, the recovery may be slow. The central bank said exiting policies too quickly would weaken economic recovery. On the other hand, a too slow exit could lead to another round of asset bubbles and higher inflation.
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