Central Banks
China Seen Cutting Rate, Boosting Cash to Support Economy
- Central bank projected to reduce MLF rate by 10 bps on Monday
- PBOC also likely to add more liquidity to meet funding demand
The PBOC is also seen injecting a net 121 billion yuan ($16.9 billion) through the MLF to boost liquidity and meet demand for funding.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s central bank is likely to cut a key policy rate and pump more cash into the financial system on Monday as it tries to counter deflationary pressures and boost lending to support the economic recovery.
The People’s Bank of China is expected to lower the rate on its one-year policy loans — called the medium-term lending facility — by 10 basis points to 2.4%, according to the median estimate in a Bloomberg survey of 15 economists. That would be the first trim to the rate since a surprise 15-basis-point reduction last August.