China Seen Rolling Over Policy Loans to Keep Liquidity Abundant
- Most analysts polled see 500 billion yuan MLF to be extended
- Policy stability and predictability is key: Maybank Kim Eng
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China’s central bank is expected to extend key policy loans maturing Friday, signaling an intention to maintain liquidity in the banking system as it tackles the challenges from a slowing economy and rising financial risk.
The People’s Bank of China will roll over all 500 billion yuan ($66.9 billion) of its medium-term lending facility coming due, according to five out of eight analysts polled by Bloomberg News. The other three surveyed expect at least 400 billion yuan of the one-year loans to be extended.