PBOC advisor declares China not ready to cut rates

FXStreet (Łódź) - PBOC advisor Chen Yula said on Wednesday that the time for an interest rate hike hasn't arrived yet.

"China should stick to prudent monetary policy," he suggested in comments for Xinua news agency. He stressed that strong stimulus should be shunned.

The PBOC advisor also remarked that China's money supply growth should be maintained close to 13%.

Jamie Coleman speculates on FXBeat that the news "might hamper the Aussie if traders thought yesterday's liquidity injection into the five largest banks was just the beginning..."