Hedging against rate risks expected

China's central bank may take further action to hedge against exchange rate risks, in light of the changing global situation and recent currency turmoil in some emerging markets, according to analysts and an official report.

Additional measures, if necessary, will be used to minimize the negative impact from foreign exchange market fluctuations and to maintain the renminbi at a stable level, in accordance with the latest central bank monetary policy report.

The People's Bank of China issued the second quarter monetary policy report late on Friday. It stated that the central bank has paid close attention to recent cross-border capital flows that have been influenced by the changing global situation.