China's central bank pledges liquidity adjustment

The People’s Bank of China promised to use a mix of policy tools to adjust bank liquidity and ensure steady credit growth amid market concerns over tight monetary conditions, Reuters reported. The statement, issued on the central bank’s website on Sunday, insisted that a temporary jump in short-term interest rates would not negatively impact the real economy. The total social financing aggregate, a broad measure of liquidity, fell to RMB1.04 trillion in June, which analysts say could be reflective of the government’s efforts to curb shadow banking. China’s second-quarter economic growth report is expected to be released Monday.