China Set to Bide Time on Rate Cut Until Yuan, Data Stabilize

August 2024 · 1 minute read

China’s central bank is poised to keep cash conditions and monetary policy broadly stable as policymakers focus on a weakening currency.

The People’s Bank of China will leave the rate on its one-year policy loans — called the medium-term lending facility — steady at 2.5% as soon as Sunday, according to the median estimate in a Bloomberg survey of analysts. Most of the analysts see either a small increase in the MLF issuance, or little changed from the loans maturing this month. Some 499 billion yuan ($69.4 billion) worth of loans are due to expire.

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