People's Bank of China Deputy Governor Liu: • Needs time for China's economy to return to normal after pandemic. • China has not seen deflation, no deflationary risks in H2. • CPI could go lower in July, rebound in August. • Bank has ample policy tools, will step up counter-cyclical adjustments. • Will keep credit growth appropriate, will step up support for key sectors. • PBOC will deepen interest rate reforms. • Will guide banks to increase lending to small firms, to private firms. (full story)