China May Inject Cash Soon as $139-Billion Maturity Wall Looms

  • PBOC to fully roll over 1 trillion yuan MLF next week: survey
  • Yuan stability opens door for further PBOC easing: BNP Paribas

The People's Bank of China (PBOC) building in Beijing.

Source: Bloomberg

Lock
This article is for subscribers only.

China is expected to take additional steps to boost its economy by making its biggest cash injection via medium-term loans this year or by reducing banks’ reserve requirement ratio as Beijing’s strict Covid curbs continue to weigh.

Six out of the nine economists and analysts in a Bloomberg survey expect the People’s Bank of China to offer 1 trillion yuan ($139 billion) one-year medium-term lending facility Tuesday, matching the amount maturing this month. Most of the remaining predict a partial rollover on expectations the PBOC may also lower banks’ reserve requirement ratio to aid the economy.