China keeps medium-term interest rates steady despite economic downturn

SHANGHAI (Reuters) – China’s central bank is widely expected to suspend monetary easing and maintain a medium-term Reuters Policy rates held steady this month as a widening policy disagreement with the Federal Reserve could give RMB and venture capital outflows. The People’s Bank of China (PBOC) cut key interest rates in August to revive credit demand and shore up a slowdown hurt by COVID-19 Economy, surprise the market – Shock. Data since then has shown a further loss of momentum, with increasing lockdowns weighing heavily on spending and confidence, and the housing market mired in Severely depressed. The economy is likely to remain weak through at least the end of the year, some analysts said. but policy is at odds with most other major economies that are raising rates aggressively to combat high inflation , the renminbi has come under pressure, falling more than 3% against the dollar since mid-August, approaching an important psychological threshold7. in a poll Market Watchers of the Week, Respondents forecast the one-year Medium-Term Lending Facility (MLF) rate to remain unchanged at 2. 10% On Thursday, the PBOC is expected to roll r 500 billion ($19. billion) worth of such loans. in, It is expected that the People’s Bank of China will partially renew the loan to term loan, while another is expected to flip completely. One participant in the survey predicted a lower marginal interest rate. “We do not expect the People’s Bank of China (this week) to refrain from its one-year medium-term lending facility due to the recent weakening pressure on the renminbi. any further rate revisions,” ING analysts said in a note. Some traders and analysts said the authorities may delay easing policy in the short term, but they still expect some liquidity due to MLF has a longer maturity period, with 2.6 trillion yuan injected later this year.