China Refrains From Cutting Policy Rate After Record Trim
- PBOC weighing impact of previous policy easing package
- Net withdrawal may reflect banks’ reduced demand for cash
The People's Bank of China (PBOC) building in Beijing.
Source: Bloomberg
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China’s central bank kept its one-year policy rate unchanged, after slashing funding costs by the most on record a month ago, suggesting authorities are cautiously pacing monetary stimulus to support the economy.
The People’s Bank of China kept the interest rate on the medium-term lending facility steady at 2% while draining a net 89 billion yuan ($12.5 billion) for October, according to a statement Friday. All but one of the 15 economists polled by Bloomberg predicted the rate would remain unchanged.