China’s central bank partially renewed medium-term borrowing, keeping interest rates unchanged as expected on Thursday, as the US Federal Reserve’s tightening limited monetary policy room to support the economy.
The pause in monetary easing comes as the yuan comes under mounting downward pressure after the People’s Bank of China (PBOC) surprised markets in August by cutting key rates, a move that further widened monetary policy divergence with other major economies. that are aggressively raising interest rates.
The central bank said it was keeping the rate on 400 billion yuan ($57.46 billion) of one-year medium-term loans to some financial institutions unchanged at 2.75% from the previous operation.
With 600 billion yuan of these loans maturing on the same day, this resulted in a net withdrawal of 200 billion yuan from the banking system.
The central bank said in an online statement that Thursday’s transaction “will keep the banking system’s liquidity reasonably ample.”
In a survey of 28 market watchers this week, 27 respondents did not anticipate any change in the rate on medium-term loans. And among them, 17 expected the central bank to partially renew maturing loans, while the other 10 projected a full rollover.
(By Winni Zhou and Brenda Goh)
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
