Reported 9 months ago
China's central bank, the People's Bank of China (PBOC), kept the rate on one-year medium-term lending facility (MLF) loans unchanged at 2.50%, as anticipated, and withdrew some funds from the banking system. This decision aligns with market expectations due to concerns about interest margins and a depreciating currency, limiting Beijing's flexibility to ease monetary policy for the economy. The steady MLF rate influences loan prime rates (LPRs), and the monthly LPR fixing is scheduled for Thursday. Despite the potential to lower interest rates, China's adjustments are restricted by both domestic and international factors, according to experts.
Source: YAHOO