China’s central bank rolled over maturing medium-term policy loans while keeping the interest rate unchanged on Monday, as expected, but markets expect monetary easing may be inevitable in the coming months to support the economic recovery.
The People’s Bank of China (PBOC) said it was keeping the rate on 125 billion yuan ($18.08 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions unchanged at 2.75% from the previous operation.
Monday’s operation was meant to fully meet financial institutions’ needs and to “maintain reasonably ample banking system liquidity,” the PBOC said in an online statement.
Read More : China keeps rates unchanged and boosts liquidity to support faltering recovery